November 9, 2009

A meeting between international grain trade houses and Egypt's Ministry of Trade and Industry has eased trade houses' concerns regarding recent problems with wheat imports into the country, grain traders told Dow Jones Newswires Friday (November 6).

International grain trade houses met with Egypt's ministry of trade and industry and officials from Egypt's state wheat-buyer the General Authority for Supply Commodities Monday, to discuss concerns around recent rejections and delayed payments for wheat shipments, said grain traders.

The meeting followed the delayed discharge of a shipment of US wheat imported by international grain company Cargill Inc. after Egyptian quarantine officials requested additional inspections due to initial tests showing the wheat exceeded seed limits.

"We were not expecting a clear cut resolution but it was a good opportunity to voice concerns," said a grain trader.

The delayed discharge of Cargill's wheat shipment follows months of increased scrutiny of wheat imports into Egypt, after authorities quarantined 52,501 tonnes of Russian wheat in May, because they found weed seeds and dead insects in the grain.

Following Monday's meeting, the Ministry and GASC recommended that international trade houses arrange for Egyptian agricultural quarantine inspectors to check wheat at the country of origin before it is shipped to Egypt.

However, trade houses said that the logistics of arranging visas and flying Egyptian inspectors to the places that wheat is being shipped from may prove difficult and cause delays to the departure of shipments, which is undesirable.

Nonetheless, a number of international grain trade houses made offers in response to GASC's latest wheat tender Thursday.

"If the meeting was not positive you would not have 10 offers from major trade houses in yesterday's tender," said an Egypt-based grain trader.