Egypt places the largest order for wheat on the international market since 2022, just like Algeria, with 600,000 tonnes 

Egypt’s public grain buyer (GASC) concluded the purchase of 770,000 tonnes of wheat under an international invitation to tender on 15 July. In detail, 93% of the stock, i.e. 720,000 tonnes, will be delivered by Russian exporters, while the remainder will come from Bulgaria. 

According to information relayed by Bloomberg, this is the largest wheat order placed by the country of the pharaohs on the international market since 2022. This deal comes at a time when the price of the commodity has been plummeting for over a month. 

The price of a tonne of wheat closed at $542.8 on 17 July 2024 on the Chicago exchange, down 22% on the $700 recorded on 28 May. This trend is attributable to the prospect of abundant supply on the international market. 

According to projections from the US Department of Agriculture (USDA), world wheat production is set to rise by 5.4 million tonnes to 796 million tonnes in 2024/2025, driven mainly by an improved crop in the USA. Uncle Sam’s country is expecting to produce 54 million tonnes of wheat, its highest level in 8 years. 

Overall, low wheat prices have stimulated demand from other importing countries such as Algeria, which also concluded a tender to buy 600,000 tonnes of the cereal on the international market on 17 July. 

This situation could also benefit other importers on the African continent. Africa is the 2nd largest importer of wheat after Asia. According to FAO forecasts, African imports of the cereal are set to rise by 2.2% to 55.6 million tonnes in 2024/2025.