Shot for Egypt after he refused, in a

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Strong blow for Egypt after the North African country refused, in an auction, to accept wheat from the European Union, including Romania. The purchase of grain by the Egyptians was a failure, so the auction was canceled, informs Agrointelligence.

On Tuesday, July 19, Egypt had scheduled a new auction for wheat. This time, GASC (the state food procurement company) wanted to see if it could make purchases that did not come from the EU, Ukraine or Russia. The auction organizers expected the participation of wheat from the USA, Canada, Australia, Argentina, Brazil based on C&F with payment in 180 days.

Deliveries of cereals were scheduled between 16 and 30 September, between 1 and 15 October, between 16 and 31 October, between 1 and 15 November.

“This auction is very similar to an experiment. The largest grain buyer has decided to test alternative supply channels, both in terms of supply volumes and prices. “

Eduard Zernin, Chairman of the Board of the Union of Cereal Exporters, told Interfax.

The Egyptians’ experiment was a failure, so they had to cancel the auction.

The General Authority Supply Commodities (GASC) has canceled its previous call to buy wheat from US, Canadian, Australian and South American suppliers after receiving only bids in the US, while the lowest bid was 443 USD / t CFR for SRW for September 16. -30 shipments from the newcomer Egyptian African Co. ”,

the official announcement has come.

Because, however, Egypt needs grain, GASC is expected to launch a new private auction on Wednesday for the same period September 16-November 15, which will close on Thursday, July 21. Payment in a private purchase is made by letter of credit every 180 days.

Why did Egypt try to test new markets?

Egypt’s decision to test new markets comes after experts said that EU countries will significantly reduce supply by the fall, so GASC needs new suppliers who can balance volumes in the Black Sea.

“According to our estimates, EU countries, which participated aggressively in the first auctions this season and have significantly selected their export potential, will significantly reduce supply by October-November, so GASC needs new suppliers who can balance volumes in the Black Sea “,

mentioned Eduard Zernin.

According to the chairman of the board of the Union of Cereal Exporters, another reason for trying to diversify supplies would be that the European Commission fears drought in almost half of its territory this summer, and this could lead to a significant reduction in yield.

“The significance of the event is not very clear, except that it reminds Europeans and Russia that the world does not revolve around them. SRW American wheat will go quietly at a price, but usually the Egyptians do not take it “,

SovEcon chief Andrey Sizov wrote on his Telegram channel.

Egypt’s only problem is that their test has failed, so it seems that GASC will continue to depend on wheat from the EU, Russia and Ukraine.

Egypt closes the top 3 buyers of Russian wheat with a volume of 4.9 million tons, according to the results of last agricultural year (July 2021 – June 2022).