Sherif Farouk, the Egyptian supply minister, said that Egypt expects to still receive a shipment of Russian grain in November after the initial consignment set for October was delayed.

In September, Egypt's Supply Ministry announced that it had purchased 430,000 metric tonnes of Russian wheat for $235 per ton via a direct buy. This was a departure from the usual practice of purchasing wheat through tenders.

Traders speculated about the key details of the transaction including the supplier and the payment terms.

Egypt, one the world's largest wheat importers has been working to secure 3.8 millions tons of wheat in response to directives by President Abdel Fatah al-Sisi.

The president wanted to launch the largest tender in country history to cover over half of its annual needs for wheat, with deliveries stretching until April 2025. The tender was only able to secure 7% of its target volume due to the high bids that sellers made in order for them not be affected by global uncertainty.

In an attempt to secure better deals, Egypt's grain buyer General Authority for Supply Commodities, or GASC, began direct negotiations with suppliers. This included an Egyptian intermediary who was not named.

After several weeks of negotiations, it was announced that the Ministry of Supply had contracted for 430,000 tonnes of Russian wheat.

"Egypt wanted over 400,000 tonnes of wheat." It is not a sum you can handle quietly. "If a company sources wheat from Russia at this level, it is bound to draw attention," said an Egyptian grain dealer.

Farouk, who addressed concerns regarding the shipment on Monday, reaffirmed that the deal is still on track.

He said that the shipment was expected to be completed in November.

Sources have previously said that if the deal is successful, Egypt could stay off the global market and continue to rely on monthly wheat supplies through a joint-venture between an Egyptian entity with a major global provider. The companies were not named due to the sensitive nature of the issue. (Reporting and editing by Jason Neely, Emelia Sithole Matarise, and Mohamed Ezz)

(source: Reuters)