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 tender was more than $14 a metric ton higher than what Egypt’s state run buyer paid in its last purchase. 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. GTCS made the lowest offer at $234.26 a ton including freight for Russian wheat. Egypt paid an average $220.25 a ton for 175,000 tons of Russian wheat in the last tender on July 10. The second-lowest offer was from Daewoo at $235.66 a ton, also for Russian grain.