Egypt still aims to secure 3.8 million tonnes of wheat by year end
Adds comment from GASC Vice Chairman Hossam El Garahy in paragraph 6, also adds further comments and details throughout
CAIRO, Aug 19 (Reuters) -Egypt remains confident of securing its target of around 3.8 million metric tonnes of imported wheat by the end of 2024, through a combination of tenders, direct purchases and government-to-government agreements, a minister said on Monday.
"We still have (a) green light to engage in direct talks to get the best price," Supply Minister Sherif Farouk told reporters on Monday, adding that Egypt should be afforded certain "advantages" in its wheat imports, whether through favorable payment terms or preferential pricing, because of the significance of its wheat buying.
Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), launched a tender on Aug. 6 which traders said was the biggest ever by the world's largest wheat importer.
But on Aug. 12 it said it had purchased only 280,000 tonnes, falling significantly short of its target.
Traders attributed the shortfall to higher prices driven by the extended payment delays that were offered. Since then, GASC has engaged in informal discussions with suppliers, traders said.
"We are in constant talks with everyone; traders, governments, and even farmers’ unions," GASC Vice Chairman Hossam El Garahy told reporters.
Traders estimate that GASC is aiming to purchase up to 1.8 million tonnes of wheat, from sellers including Russia, at a reported free-on-board price of around $248 per tonne, with payment made via 270-day letters of credit.
"We are confident that we can buy (wheat) at discounted prices from our two main sources, thanks to balanced foreign relations," Farouk said.
While he did not specify the sources, Russia and the EU have been key suppliers for Egypt. He also noted Egypt is exploring the possibility of adding Turkey as a new origin for wheat imports, following Algeria's recent significant purchase from the country.
Farouk said Egypt's wheat reserves currently cover well over six months of demand, but the supply ministry aims to extend reserves to more than nine months to mitigate potential "geopolitical tensions".
"Our goal is to always maintain a reserve enough for over six months for all strategic commodities," Farouk said.
El Garahy said Egypt's wheat reserves cover 6.3 months, vegetable oils enough for 6.2 months, and sugar for 13 months.
Farouk also said that while GASC could access loans to buy wheat at sight, or for immediate payment, it is still seeking better payment terms.
Reporting by Mohamed Ezz; Writing by Clauda Tanios and Mohamed Ezz; Editing by David Goodman and David Holmes
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
