The Clap The Egyptian government purchased 120,000 tons of wheat from Russia for $340 per ton. The shipment will be shipped in November 2022.
The Deets This deal was executed directly through suppliers rather than the tender system Egypt has been working with. About 55% of the wheat Egypt purchased this fiscal year was directly through suppliers.
Why this Matters Directly purchasing from suppliers give the government more flexibility than international bidding, as it enables them to buy smaller quantities of wheat, at a lower price.
At the beginning of the Russian-Ukrainian war, the price of wheat reached $429 per ton. The price began declining once again due to a historic agreement the two countries made to resume the export of grain through the Black Sea.