Mostakbal Misr did not make any deals for purchasing wheat and oil in tenders.

Egypt's Mostakbal Misr agency for sustainable development did not make any deals within the wheat and vegetable oil procurement tenders scheduled for November 28th. Grain Online agency reports this with reference to information from Reuters.

Traders stated that they have no information on prices and requested additional details on the purchasing conditions and payment terms from the agency. However, there were reports of several trading companies meeting at Mostakbal Misr's offices.

No new tenders have been announced, and traders are awaiting guidance from Mostakbal Misr.

Initially, the agency invited tender participants to submit bids by noon local time on November 28th after announcing on November 27th the intention to purchase wheat and vegetable oil through direct deals.

Mostakbal Misr's attempts to conduct direct purchases indicate a possible shift from the current system of international tenders conducted by GASC, Egypt's state agency and the country's main food buyer.

Some traders associate the move to direct purchases with Russia's alleged policy requiring minimal export prices, which could deter exporters from offering competitive prices in public tenders. A trader from Europe suggested that direct deals could help Egypt secure lower purchase prices.

However, Russian exporters are resisting. The Russian Grain Exporters Union stated they lack information on Mostakbal Misr's ownership and financial state, and several Russian suppliers mentioned they won't engage with the agency until its representation on behalf of the Egyptian government is confirmed.

"It seems they are trying to rush everything. Trading houses really don't know what kind of agency this is," said one trader.

"When it comes to grain deals, the devil is in the details, where millions of dollars are at stake. Even minor changes in GASC specifications in the past led to huge delays in ship unloading and significant financial losses for sellers," he added. "The risk might be too great if not confident about all contract details and their execution."

Mostakbal Misr was established in 2022 by presidential decree and grew out of land reclamation programs started in 2017.

Mostakbal Misr agency, GASC, and Egypt's Ministry of Supply did not respond to repeated requests from Reuters to comment on the situation.