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Egypt Seeks to Broaden Wheat Import Sources as Russian Grain Prices Climb
04.08.2011 11:09 "Agro Perspectiva" (Kyiv) —
Egypt, the world’s biggest wheat importer, is stepping up efforts to find more sources after prices it paid for Russian grain climbed almost 5 percent in less than a month.
The state-run General Authority for Supply Commodities bought Russian wheat for as little as $243.50 a metric ton on July 7, its first purchase following the expiration of a ban on grain exports from the eastern European country after almost a year. The authority paid as much as $255.25 at its latest tender on July 29.
«The price of Russian wheat has been going up gradually, tender after tender,» Vice Chairman Nomani Nomani said by phone from Cairo yesterday. «So we are now urging other source countries to increase the competition and decrease their prices, and we are also seeking to expand our list of approved import sources.»
The authority is still considering restoring Romania and Ukraine to a list of approved sources that now spans nations including the U.S., France and Australia, Nomani said. Russia accounted for more than half of Egypt’s wheat imports before it barred all outbound cereal shipments on Aug. 15.
«What is helping boost Russian wheat prices is that it’s cheaper than others, and there is a lot of demand for it,» Nomani said. «But we want to diversify origins to prompt competition and prevent monopoly, in order to get the best quality for the best prices.»
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