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Egypt’s wheat imports from Russia rose in March regardless of conflict
MEE and companies
Wed, 04/06/2022 – 13:04
Egypt, usually the world’s high purchaser of wheat, noticed an increase in imports of the grain from Russia in March, regardless of provide and fee disruptions following its invasion of Ukraine, which additionally drove merchants to hunt shipments from different suppliers.
Egypt obtained 479,195 tonnes of wheat from Russia in March, up 24 % from the identical month final 12 months, in accordance with freight information seen by Reuters. Wheat imports from Ukraine stood at 124,500 tonnes, down 42 % year-on-year.
“Russian ports remained open,” mentioned Mohammed el-Gammal, a Cairo-based grains guide for the UN Meals and Agriculture Group and US Wheat Associates.
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“Delivery slowed a bit in late February and it picked up in March, whether or not for brand new contracts or outdated ones signed earlier than the invasion.”
Egypt depends closely on Black Sea wheat resulting from its high quality, value and proximity, merchants say. In 2021, Egypt imported round 80 % of its wheat from Russia and Ukraine.
Because the 24 February invasion, wheat importers in Egypt have confronted record-high costs, fee problems resulting from sanctions in opposition to Russia and disruptions to Black Sea wheat shipments, particularly from Ukraine.
Though sanctions exclude meals, merchants say banks are reluctant to finance wheat imports from Russia.
Importers are nonetheless “making an attempt to determine a secured channel” for funds of already delivered Russian cargoes, mentioned one dealer who imports to Egypt. A second dealer mentioned some cargoes had been paid for as a result of they had been bought earlier than the invasion, and that instances had been being resolved individually by way of negotiations with banks.
Wheat stockpile down
Egypt’s milling trade is extremely accustomed to Russian and Ukrainian wheat, mentioned Cairo-based dealer Hesham Soliman, in accordance with Reuters.
“They will at all times give it precedence so long as it is obtainable,” he mentioned.
However purchases of private-sector wheat imports from different suppliers have continued, regardless of increased costs, merchants say.
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They’ve secured uncommon wheat shipments from France, Brazil, Lithuania and Bulgaria, in accordance with Reuters delivery information, and are additionally anticipating a uncommon cargo from Germany, which merchants say hasn’t provided Egypt for a number of years.
Egypt’s state grains purchaser, the Normal Authority for Provide Commodities (GASC), cancelled two tenders as costs soared after the invasion and has indicated it might return to the market in mid-Might.
Egypt’s strategic stockpile of wheat has dropped from 4 months’ price of provide in early March to 2.6 months’ provide as we speak, in accordance with Reuters and a report in Mada Masr, an unbiased Egyptian on-line newspaper. However authorities officers say it ought to rise once more with procurement from the native harvest, which begins this month.
GASC provides wheat for closely subsidised bread obtainable to tens of hundreds of thousands of Egyptians. The federal government has mentioned it’ll additionally assist the industrial sector after setting value caps for unsubsidised bread.
Wheat imports by Egypt’s personal sector overtook these by GASC in 2021, reaching round 60 % of the entire.
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