Drought to force top wheat buyer Egypt to pay more

A drought that’s hit wheat crops across the Black Sea region and Europe will force top buyer Egypt to pay more for supplies. The cheapest offer in Tuesday’s tender was more than $14 a metric ton higher than what Egypt’s state run buyer paid in its last purchase, according to traders familiar with the process and data compiled by Bloomberg. The General Authority for Supply Commodities is seeking wheat for Sept. 1-10 delivery.

Benchmark futures traded in Chicago have surged almost 20 percent this year and Paris wheat for December is trading near a record for the contract. Dry weather means Russian production will fall for the first time in six years and output in Ukraine will be lower than expected. Crops in France, Germany and the Baltic countries are also expected to decline from a year earlier.