General Authority for Supply Commodities (GASC), Egypt’s state-owned grains buyer, has once again cancelled its wheat tender on Monday, citing sharply higher prices amid mounting supplies worries following Russia’s invasion of Ukraine.
With only a few offers at a this higher price, Egypt halted for the second time since Thursday its recent tender to buy wheat – abandoning efforts to secure the grain it needs to subsidise bread for its people.
Russian and Ukrainian wheat exports account for a quarter of the world’s wheat exports. Russia’s commodities remain exempt from sanctions for now, but traders are concerned by rapidly-changing penalties, increasing freight and insurance costs, and shipping suspensions.
Global food prices are near their highest point in recent history as a result of limited grain supplies from the area.
There were only three bidders in Egypt’s wheat tender on Monday, with two firms offering French wheat and one offering U.S. supplies, traders said.
The number of bids in a tender from mid-February, before the Russia-Ukraine war broke out, was 17. During that time, the price of a tonne has increased by at least $80. As a result, Egypt’s state buyer said high prices were behind the cancellation of the tender.
