Egypt decided to refuse wheat from the Russian Federation after Russia changed the price.
As Bloomberg writes, citing informed sources, after the Russian Federation blocked supplies of Russian grain, Egypt will switch to supplies of half a million tons of wheat from France and Bulgaria. The publication notes that Russia was not satisfied with the price for wheat proposed by Cairo.
The publication’s interlocutors note that this is the second case in the last few months: the purchase of Russian wheat by the Egyptian state buyer is disrupted, as the Russian Federation is trying to set an unofficial minimum price.
In early September, Ali El-Mosily, Egypt’s Minister of Food, said that the country’s General Administration for the Supply of Commodities had agreed to buy 480 thousand tons of Russian wheat during direct negotiations. The deal was struck at $270 a ton, including freight, below the unofficial minimum price that Russian officials were trying to set at the time. A few days later, Egypt announced that grain trader Solaris would be allowed to supply grain of any origin.
Russian grain ports are overwhelmed after two consecutive record harvests, making Russia the dominant supplier and price setter in the global market. But excess supply is putting pressure on local prices, prompting officials to impose a minimum price to prop up the market. The application of this price limit has been inconsistent, notes Bloomberg.