Three sources who have direct knowledge of this matter said that the first shipment of Egypt's 430,000 metric ton purchase of Russian wheat started loading on Saturday after a delay of nearly three months.

The shipment of 63,000 tonnes has been loaded so far by the Novorossiysk Grain Processing Plant, part of the OZK Group that also controls the terminal. Demetra Grain Holding, a major shareholder of the terminal, is also part of OZK Group.

Sources said that the shipment will leave the port in this week and arrive in Egypt by the end of the calendar year.

The Ministry of Supply in Egypt did not respond immediately to a comment request.

In September, the Ministry of Supply announced that it had purchased the wheat directly at $235 a ton. This was a departure from the traditional international tenders used to obtain supplies.

The supplier's name and the payment terms have not been disclosed. Sources said it was not connected to the Air Force's Mostakbal Misr which took over the General Authority for Supply Commodities, GASC, for the importation of Egypt's strategic goods.

Egypt, the world's largest wheat importer, is trying to benefit from lower global prices in order to buy more grain. It uses this grain to subsidise bread for tens and millions of Egyptians.

In August, it was reported that Egyptian President Abdel Fattah al-Sisi had ordered the largest ever GASC tender in order to meet more than half GASC’s needs all at once. GASC was only able to achieve 7% of their target because prices were higher than expected.

After weeks of negotiations, GASC engaged in direct discussions with suppliers. The Ministry of Supply announced that it had contracted for 430,000 tons of Russian Wheat to be shipped by October. The shipments were then delayed to November, and finally to December. Reporting by Mohamed Ezz, Olga Popova and Kirby Donovan; editing by Jane Merrill and Kirby Donovan

(source: Reuters)