Two sources who have direct knowledge of this matter said that Egypt's state grain buyer had agreed to one of its largest direct wheat contracts for monthly supplies between November and April.

One source said that the wheat would be delivered to the General Authority for Supply Commodities, GASC, with 510,000 metric tonnes per month coming from the Black Sea, totaling 3.12 million tons for the period.

Egypt is a major wheat importer in the world. It uses these purchases to produce heavily subsidised bread. This politically sensitive benefit is available to tens and millions of people. The state buyer buys strategic commodities through transparent international auctions that influence the global grain market.

In recent years, it has bought wheat directly from farmers to get more competitive prices. This latest deal is the largest agreement ever.

Source: Due to the sensitive nature of the issue, it was not possible to disclose the names of companies involved.

The same source stated that "this is a strategic alliance which will hopefully lead to this JV supplying the country and GASC year-round."

The joint venture has already agreed to provide GASC with 430,000 tons of metric tonnes for shipment in October.

reported

Last month,

GASC tried to secure the same quantity in August through its largest-ever tender, which was personally requested by Egyptian President Abdel Fattah al-Sisi due to food security concerns raised by an intelligence briefing.

GASC has not responded to a request for comment. (Reporting and editing by Kirby Donovan, Toby Chopra, and Sarah El Safty)

(source: Reuters)