The unnamed sources indicated that Mostakbal Misr's contracts amount to approximately 1.267 million metric tons, predominantly sourced from Russia. Shipments of the contracted wheat have already started arriving at Egyptian ports, with additional deliveries planned for the upcoming months.
The appointment of Mostakbal Misr in December as Egypt's exclusive importer of strategic commodities represents a notable shift. Established in 2022 by presidential decree, Mostakbal Misr was formerly the development branch of the Egyptian Air Force, while the long-standing General Authority for Supply Commodities (GASC) served as the country's primary buyer of strategic grains. Historically, GASC imported between 4 to 5 million tons annually.
Traders and analysts have pointed out discrepancies between the volumes contracted by Mostakbal Misr and the market evidence available, along with a lack of transparency regarding procurement terms. "We cannot confirm the announced transaction. Accredited Russian exporters are not aware of its details as they did not participate in it," stated Eduard Zernin, head of Rusgrain, to Reuters.
A European trader noted that while some volumes were indeed purchased, they were "nowhere near" the figures cited by the sources. Another trader estimated the amount to be around 480,000 metric tons, mainly sourced from local port warehouses and paid for in Egyptian pounds.
Reuters was unable to independently verify this information. Egypt relies heavily on wheat imports to provide subsidized bread for 70 million citizens and has faced difficulties in sourcing the grain in recent months as its strategic reserves have diminished.
An official from the Egyptian government informed Reuters that the new agency has encountered opposition from international organizations that provide hard currency to Egypt. These organizations indicated a preference for engaging with "civilian bodies" rather than a government entity. The official noted that strategic reserves have decreased from a seven-month supply in July 2024 to just three months currently, which includes previously contracted amounts.
In September, the General Authority for Supply Commodities (GASC) procured 430,000 tons of Russian wheat for delivery in October. However, delays have postponed shipments to November and December, with only two deliveries totaling 120,000 tons completed thus far.
Additionally, Egypt purchased 290,000 tons in November, bringing the total wheat shipments since September to 410,000 tons. This amount constitutes a small portion of Egypt's overall wheat procurement strategy, which aims to secure 3.8 million tons by the end of 2024, as previously stated by Supply Minister Sherif Farouk.