Egypt Quarantines Russian Wheat
Media reports suggest that the state-owned Egyptian wheat buyer GASC has ordered the seizure of all Russian wheat consignments in the country after a cargo at the Egyptian port of Safaga was said to be "unfit for human consumption".
More than half of Egypt's import requirements have been coming from Russia or Ukraine in 2008/09. Earlier in the marketing year there were also problems with Ukrainian wheat for failing to meet contractual standards.
Egypt is the joint largest wheat importer in the world along with Iran, and is expected to import around 8.5 MMT in the current marketing year.
Russia said that they didn't realise that it was supposed to be fit for human consumption and that they thought it was just Egyptians that were gonna to eat it!
Egypt Buys Russian Wheat In Tender
Egypt's state-owned wheat buyer GASC has said it has bought 100,000mt Russian wheat in a tender at $173 FOB, plus $8.50 freight.
The winning tender was from Abu Dongol, and beat the cheapest French wheat offer by $12/tonne.
It is interesting to note how close the freight spread was between all the different origins offered, reflecting the current state of the freight market.
US wheat was offered with shipping as low as $11/tonne, with French freight offered at $8.50/tonne and shipment from Germany offered at $9/tonne.
Egypt Buys US Soft Wheat
Egypt's state-owned GASC has bought 55,000mt of US soft wheat in a tender concluded Thursday, paying $174.99/tonne FOB to Alexandria Grain.
Argentine wheat was offered as low as $176/tonne in the tender, with the cheapest French wheat being $181.87/tonne.
Russian wheat was offered cheaper down to $170/tonne, but GASC passed on that.
Egypt Tendering For Wheat
Egypt is back in the market for wheat according to Nogger's sources. They will tender Thursday for 55,000mt US/Argy or Kazakh soft wheat, together with floating a tender for 25-60,000mt French/UK/Russian milling wheat Nogger understands.
Given the tight supply situation in Argentina at the moment, my money is on Kazakhstan getting the nod for the soft wheat and Russia getting the vote for the milling wheat.
Nogger's sources also reveal that the Allies get the nod in WW1 & 2, the 1966 World Cup Final will end in a controversial win for England, and that Sue Ellen shot JR.
Egypt Closes Door On Ukraine Wheat
Egypt's state-owned wheat buyer GASC has officially announced that it will not accept any Ukrainian wheat for the rest of the current season due to quality issues.
There have been rumours for some time of Ukraine wheat failing to meet contractual quality criteria.
Egypt has already taken 886,000mt Ukraine milling wheat so far this season.
Egypt Buys US And Russian Wheat
Egypt's GASC said Tuesday it has bought 110,000 metric tonnes of US soft red wheat and Russian wheat in a tender. 55,000 tons of US soft red wheat was bought from Perdue at $194.84/tonne. Egypt also bought two cargoes each of 27,500 tonnes of Russian wheat from Horus at the price of $203/tonne.
Here's A Surprise - Egypt Buys Russian/Ukraine Wheat
Egypt passed on tenders of EU and US wheat Wednesday to buy 205,000MT of Russian/Ukraine wheat.
For some reason I can't get my head around the market seems somewhat surprised and disappointed about that.
Are you?
Egyptian Wheat Tender Info
Egpyt have tendered for 55-60,000MT of wheat FOB.
Its interesting to note who tendered, and at what price, and from where:
US origin wheat was offered in a range of USD228-238 FOB.
French/German wheat was offered in a range of USD252.50-261 FOB.
Russian/Ukraine wheat was offered in a range of USD250-260 FOB.
Abu Dongol (who?) came in with the cheapest offers on US and Russian/Ukraine origin wheat. Their offer of Russian/Ukraine wheat was matched by Al Wehda United (I'm not making it up).
The cheapest offer on French wheat came from Invivo who offered 30,000MT at USD252.50. Cargill offered two parcels of French wheat 60,000MT and 40,000MT, both at USD253.
Abu Dongol 2, Al Wehda United 1 you might say?
Meanwhile here's the rest of the scores from the Egyptian Grain Tender Premier League:
Toepfer 0 Louis Dreyfus 0
Glencore 0 Soufflet 0
Bunge 0 Lecurer 0
Horus 0 Aston 0
Venus 0 Alexandria Grain 0
There is currently extra time being played in the match between Invivo and Cargill, but we'll bring you the final score as soon as we get it.
Egypt to grow wheat on 800,000 acres in Uganda
Egypt and Uganda are close to a deal allowing Egypt to grow wheat on 800,000 acres of land in Uganda sources say.
Uganda has suitable land and a favourable climate to grow wheat, but its potential has gone largely untapped until now.
Uganda is keen to cash in on soaring world food prices and has plenty of land available according to President Yoweri Museveni, who's government recently abolished rent on industrial land in an effort to attract investors in the country.
Egypt is on of the worlds largest wheat importing nations buying around 6mmt of the grain annually.
The deal is expected to be concluded before the end of the year.
Another example of if the financial incentives are high enough then world grain production comfortably has the ability to increase output.
The Ukraine has proven that this year and huge areas of land there still have the potential to double yields as do vast areas of Russia.
Egyptians riot over bread crisis
Also from today's Telegraph:
Egyptian families are having to get up at dawn each day to queue up for bread rations, as the country struggles to cope with grain shortages that threaten a major political crisis.
"I've been here since six this morning, it is now nine o'clock and still no bread," Asma Rushdi shouts in front of a tiny state-owned bakery in the overcrowded and impoverished area of Bulaq Dakrur in Cairo.
She is only allowed to spend one Egyptian pound (9p), which will get her 20 pieces of the subsidised flat round bread baladi - the staple of the Egyptian diet.
For Asma, who has to feed her family, including four children and two in-laws, from her husband's monthly salary of £200, "bread is everything".
Egypt is in the grip of a serious bread crisis brought on by a combination of the rising cost of wheat on world markets and sky-rocketing inflation.
The price of bread has increased fivefold in private bakeries, creating panic in state-run bakeries that the staple may run out.
Scuffles in bread queues are a daily occurrence. In recent weeks, they have turned into violent clashes, leaving at least seven people dead, according to police.
Police clashed with protesters in the Nile Delta city of Mahalla on Sunday, firing tear gas and arresting dozens after angry residents demanding an end to price hikes and soaring inflation set two schools ablaze and burnt tyres along the city's railway.
Egypt is the world's biggest consumer of bread, with each Egyptian eating 400 grams of bread a day. That compares with France - the land of the baguette - where the figure is only 130g per day.
The shortages have forced bakers and consumers on to the black market. According to the state-owned daily Al-Ahram, 12,000 people have been detained in raids across the country in recent days and they are all to face justice over selling flour on the black market.
A 100 kilogram sack of subsidised flour is worth about $3.14. The same sack costs $377 on the black market.
