November 11, 2003

Review of Egypt's Feed Wheat Market in 2003

Since the beginning of Marketing Year 2003/2004 (July,2003) through October,15, 2003,  Egypt imported a total of 1,701,801 MT of wheat as follows:

                                                                                From All Sources        From U.S

General Authority for Supply Commodities (GASC):           1,015,000              655,000                      

Food Industries Holding Company (FIHC)                             860,000               50,000          

Private Sector:                                                                   600,801             273,093

Total:                                                                             1,701,801              683,093

Private sector wheat imports are based on local industry estimates. Egypt's total wheat imports by country of origin are as follows.

During the months of September and first half of October 2003, GASC purchased 180,000 MT of US. Soft Red Winter wheat at a price of $143.89 per MT (FOB); 180,000 MT of US Soft Winter wheat at a price of between $142 and $ 145.25 per MT (FOB) and 115 MT of US Hard Red Winter wheat at a reported price of between $146 and $149.70 per MT (FOB) for delivery during the period of October 1 to November 10, 2003. 

According to local industry estimates, private sector companies also imported 179,663 MT of US HRW wheat; 68,630 MT of wheat from Russia; 31,000 MT from Germany; and 30,000 MT of wheat from France.

On October 1st, 2003, the Egyptian plant quarantine office in the ministry of Agriculture attempted to initiate a new inspection policy on wheat imports, which would have required all wheat vessels to Egypt to be inspected by Egyptian plant quarantine at the port of loading, in addition to the regular import inspection upon arrival in Egypt.  Egyptian plant quarantine officials justifed the new policy due to an apparent increase in the number of foreign seeds in import samples. If implemented, this requirement would have caused substantial delays and additional import costs. Fortunately, the Minister of Agriculture canceled the implementation of this requirement the day it was to become affective (Nov.2,2003).

Source: USDA