Wheat trading on mercantile exchange suspended amid price speculations



Sun, 28 Jan 2024 - 05:50 GMT


Sun, 28 Jan 2024 - 05:50 GMT

Cairo – January 28, 2024: The Ministry of Supply and Internal Trade has paused trading of wheat on the Egyptian Mercantile Exchange (EME), explained Minister of Supply and Internal Trade Ali Moselhi on Saturday, citing speculations on prices in the local market.

Moselhi emphasized that Egypt’s strategic reserves of wheat can sufficiently cover Egyptians’ needs for 4 and a half months.

Deputy head of the Chamber of Grain Production at the Federation of Egyptian Industries, Abdul-Ghaffar El-Salamouni, stated in a separate statement that the decision to pause wheat trading is to control the market and protect consumers, as some mills are overpricing flour products.

Regarding speculation that Egypt’s domestic wheat supply is suffering a shortage, El-Salamouni denied any shortage, noting that the Egyptian pound’s fluctuating exchange rate is one of the reasons behind the price speculation. 

Concerns over wheat continue after Egypt, which relies on external sources of wheat for its subsidized bread, had inflows of the commodity cut due to the Russian/Ukrainian war.

However, imports of wheat have stabilized over the past few months, increasing by over 14.5 percent to 11 million tons in 2023 compared to 9.6 million tons in 2022, according to the Ministry of Supply at the start of 2024.

Egyptian imports of Russian wheat have jumped by 39 percent year on year (YoY) in 2023 to 7.5 million tons, according to a recent report by media, citing undisclosed government documents.



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