September 28, 2012

 

Russia's drought may divert wheat export business to Egypt
 
 

As drought exhausted Russia's grain stocks, France and other leading global wheat sources are anticipated to replace Russia in doing business with Egypt.

 

Russian agriculture ministry officials have repeatedly pledged no export restrictions, but hot and dry conditions trimmed yields by more than a quarter, leading to depleting much of the amount available for sale.

 

Traders expected Egypt's General Authority for Supply Commodities (GASC) to receive few or no offers for Russian wheat in its recent tender for December shipment.

 

Other dealers expected GASC to turn to French, Ukrainian, Polish, Romanian and German wheat in the coming tenders.

 

Lower freight rates are also expected to help the US, Canada, Argentina and Australia to become competitive in coming months as well.

 

Earlier this month, Egypt's GASC said it had purchased around seven months of supplies from local and international sources.

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