Sources claim that Egypt's Mostakbal Misr Agency for Sustainable Development has not made any purchases of wheat or vegetable oil on Thursday.

The agency was asked to provide more information on the terms of payment and purchasing by companies. Traders stated that they were unaware of any price proposals.

There were reports, however, that several trading companies took part in an event at the Mostakbal Misr office.

Mostakbal Misr has not announced a new deadline, and traders await further instructions.

The agency initially invited bids by noon local time (10 am GMT) on November 28 following a late-Wednesday announcement that sought to negotiate direct purchase agreements for wheat and vegetable oil on Thursday, rather than formal offers submitted as part of an international tender.

The announcement marks a change in the procurement strategy and could replace the international tenders system used by Egypt's main state buyer for essential commodities, the General Authority for Supply Commodities.

Some traders have attributed this shift to direct purchases to Russia's unofficial export price policy. This has reportedly discouraged exporters from providing competitive prices during public tenders. One European trader said that direct deals could help Egypt get lower prices.

However, Russian exporters remain hesitant. The Union of Grain Exporters of Russia said on Thursday that they were unaware of Mostakbal Misr’s ownership and financial situation. Several Russian suppliers also stated that they would not enter into a contract without confirmation that Mostakbal Misr is acting for the Egyptian government.

It looks like they tried to move too fast. "The trading houses don't know who the agency really is," said a trader.

The devil lies in the details in grain transactions, where millions of dollars are at stake. "Even minor changes to GASC specifications rules in the past caused delays and losses for the sellers." he said.

The risk is too high if the contract and execution are not perfect.

Mostakbal Misr, founded by presidential decree in 2022, evolved from land reclamation and reforestation projects that began as early as 2017.

The Supply Ministry, the GASC and Mostakbal Misr Agency have all declined to respond to requests for comment.

(source: Reuters)