Import of wheat in Egypt will only state operator GASC
the Minister of supply of Egypt reported to ban the private import of wheat in the period from 15 April to 15 July. During the period of validity of public procurement campaign to import wheat will only be allowed to GASC Agency that will carry out international tenders. This is to avoid fraud that occurred in previous years when under the guise of Egyptian wheat to the government were sold cheaper imported grain.
Egypt's Government plans to purchase from local farmers 4.5 million tons of wheat. This will give a further blow to the Russian grain exporters, which have not yet recovered after the introduction of Turkey 130% duty. In addition to the state Agency GASC significant volumes of grain imported to Egypt by private entities. Only for the period 15 April-15 July 2016 Russia exported to address private Egyptian companies 596 thousand tons of wheat.
Loss in the short term, large buyers such as Turkey and Egypt will lead to lower prices for Russian wheat, which will cause a fall in the value of the black sea grains in General.
In Chicago on Monday after a minor speculative growth again became cheaper soft wheat. The market crushed by the news of rainfall in the wheat growing areas in the United States.
May the wheat prices in the U.S. declined:
- in Chicago 1.47 $/tonne to 154,60 $/tones of soft winter wheat SRW,
- in Kansas city by 2.48 $/tonne to 154,78 $/tones on hard winter wheat HRW,
- in Minneapolis 1.01 $/tonne to 195,84 $/tone for hard spring wheat HRS.
In the European market the situation is also not too optimistic. Weather conditions contribute to the development of grain, so quotes French milling wheat fall 7th trading day in a row. A stronger Euro exacerbates the low competitiveness of European wheat.
quotations May milling wheat on the Paris MATIF fell by € 1.25/t to 165,75 Euro/ton or 180,23 $/ton.