The Egyptian authorities are trying to change the system of public procurement of wheat, but are facing resistance

On the evening of November 27, Mostakbal Misr Agency announced the purchase under direct contracts of wheat with shipment in January and vegetable oils with delivery in February-March. Offers based on CIF delivery with payment deferred for 270 days are accepted until November 28. The tender conditions, except for the basis of delivery, comply with GASC requirements.

Representatives of Mostakbal Misr, which Reuters calls the sustainability agency, were present at GASC's latest tender on Nov. 4, observed the process and asked for traders' contact details after the trades. Bidders suggest that Mostakbal Misr is trying to "relegate" GASC to the background, but the agency lacks experience and connections in the market. So far, Mostakbal Misr, founded in 2022 by order of the President of Egypt, has been engaged in land reclamation projects.

The Union of Exporters and Producers of Grain of the Russian Federation has already stated that it will not participate in the Mostakbal Misr tender, or in private negotiations with this or any other company that will conduct procurement for the needs of the state, if the Egyptian authorities do not provide an official notification of the authority of such an organization. Currently, there is no information about the owners of the new Mostakbal Misr structure, nor about the financial situation.

The Union of Exporters also recalled the initiative adopted in October, according to which no Russian grain exporter will supply products to intermediaries acting on behalf of state buyers.

We will remind that in September, Egypt announced the purchase of 480,000 tons of Russian wheat from a little-known company outside the tender, but Russian exporters united and did not sell the grain, which disrupted supplies.

GASC wheat procurement tenders have always provided market price indications and facilitated open competition in supplies to the world's largest wheat importer.

According to traders, the tender announced by Mostakbal Misr remained unfulfilled. Although the agency positions itself as a new arm of the Egyptian government, market participants have doubts about the company and its records.