200 thsd tons of Ukrainian wheat stuck in Egypt — traders await payment under government contracts

that the delays are related to the new system of state grain procurement in Egypt, which is carried out by Mostakbal Misr (Future of Egypt) instead of the former operator GASC. Fastmarkets noted that difficulties could have arisen due to a change of bank, long terms of letters of credit (up to 270 days) and the participation of private intermediaries, such as Isotech, which complicated the chain of payments. According to the publication, some of the ships were stuck in the port for more than a month (from September 11-12). As Atria Brokers broker and ASAP Agri director Khrystina Serebryakova told Latifundist.com, the first signs of the problem appeared in early October, when Egyptian demand practically disappeared for a week. According to her, traders found out that Egypt had technical difficulties with opening letters of credit – bank guarantees of payment for the delivered grain. “In early October, we saw that demand from Egypt had disappeared for at least a week, and it became ...