Egypt's main state-owned wheat-purchaser says it is experiencing no problems obtaining letters of credit (L/Cs) for global wheat purchases.

In the wake of social, economic and political turmoil since Hosni Mubarak was ousted as president in early 2011, Egypt has experienced problems obtaining L/Cs for transactions for several commodities, notably fuel (DC World News, 28 June 2013 and 26 June 2013).

L/C flow

Earlier this week, Egypt's General Authority for Supply Commodities (GASC) said in a statement that all L/Cs to wheat suppliers have been opened or are being processed.

The statement responded to reports that European traders in France and Germany had been speculating that financial problems were causing delays to the opening of L/Cs and could be the reason GASC has been absent from the wheat market in recent weeks.

No problems

"There are no financing problems. The reason we were absent from the market the past few weeks is because the prices were too high," GASC's vice chairman, Abdel Fattah, told local media.

He added that GASC had also cancelled a tender in which it sought wheat for shipment between 21-30 November because prices were too high.

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