The General Directorate of Supply (GASC) of Egypt, the organization responsible for the strategic procurement of wheat on behalf of the Egyptian state, announced the purchase of 170,000 tons of wheat from Romania and Bulgaria in an international auction.

The purchase includes 60 thousand tons of wheat from Romania, which will be delivered on November 10-20, and 110 thousand tons of wheat from Romania and Bulgaria, which will be delivered on November 21-30.

European wheat remains preferred in Egypt as an unofficial price ceiling affects the competitiveness of Russian wheat, Reuters and Agerpres reported on Thursday.

Traders say Moscow authorities unofficially set a minimum export price of $270 per tonne free-on-board (FOB) at international auctions to limit exports and keep domestic prices under control.

In the first round of the GASC auction, all Russian wheat was offered at $270 per tonne FOB, the same price that Russian wheat was offered at last week’s auction, but during negotiations at the auction on Wednesday, a number of bidders lowered their prices for Russian wheat below $270 . per ton, and some companies offer $260 per ton.

Traders say Moscow authorities have unofficially approved the price cut.

More than 70 million Egyptians depend on the government’s bread subsidy program

However, wheat from Romania and Bulgaria is still offered at lower prices.

Egypt is currently suffering from a currency crisis after the war in Ukraine sent shock waves through the Egyptian economy, with more than 70 million of the 103 million Egyptians dependent on the government’s bread subsidy program.

Last year, Egypt’s Ministry of Supply began buying wheat directly from suppliers to be able to negotiate better prices in times of uncertainty.