Two wheat cargoes purchased by Egypt are stuck at Russia's main Black Sea commercial port.

The cargoes are holed up Novorossiisk port after the trading house selling the grain failed to open import letters of credit (L/Cs) for them.

Unexplained causes

The buyer is Egypt's state-owned General Authority for Supply Commodities (GASC), which bought two 60,000-tonne shipments from global commodities trader, Cargill, according to local media reports.

The reports go on to say that both GASC and Cargill have so far been unable or unwilling to explain the nature of the L/C opening difficulties.

Banking issue

Local traders are reported as saying that the delay was a banking issue and was not linked to any financing difficulties at Egypt's state-owned wheat buyer.

The traders added that L/Cs have been successfully opened by other suppliers to GASC in the same tender round.

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