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FINANCIAL NEWS
Russia’s wheat exporting rivals rub hands for Egypt deals
27 Sep 2012
(MENAFN) France and other leading global wheat sources are expected to replace Russia doing business with top importer Egypt, as drought exhausted Russia’s grain stocks, Reuters reported.
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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