The scale of Egypt’s wheat purchases in July was “unprecedented,” Ehab Farouk writes for Reuters’ Arabic service. Egypt bought 20% of its target for FY2017-18 in just under a month, he says, and domestic supply decreased. A Supply Minister source told Farouk the increase was to compensate for the drop in supplies domestically as the government tightened control over the wheat delivery processes to avoid inflating delivery figures. This resulted in a 1.8 mn tonne drop compared to last year, he says. The source added that the point of expanding the purchases that significantly was to secure a minimum of five months’ supply of the grain and avoid any delivery disruptions that could occur during the winter months. A trader told Farouk Egypt’s increased purchase volumes drove up wheat prices on the international market.

Tags: