Egypt, the world's largest wheat importer, has no interest in “long-term” contracts to buy the grain, said Nomani Nasr Nomani, vice chairman of state grain buyer General Authority for Supply Commodities, Bloomberg reported. “Egypt doesn't believe in this type of multi-year or long-term contract,” Nomani said at an industry conference in Marseille, France, organized by Orama, the French union of commodity crop producers. Egypt prefers to buy in international markets based on competing offers, Nomani said. Conditions for buying French wheat “weren't really favorable” in the last few years, spurring Egypt to turn to other regions, Nomani said, according to Bloomberg. This year's absence of Russian exports offers “a chance for France” to supply the North African country's market, he said. “The absence of Russia has reduced the offer,” Nomani said, “As a consequence, prices have risen." The authority imports about 6 million metric tons of wheat a year, out of total Egyptian purchases of 8-9 million tons, according to Nomani, Bloomberg added. In its daily note, Beltone Financial said that “given the fluctuations in the global wheat market and other essential commodities, Egypt should start considering entering into longer term contracts to provide more stability for itself and suppliers.” “Some Gulf countries such as Saudi Arabia are now beginning to undertake this policy,” Beltone added.
