Ukrainian wheat replaced Russian wheat on the Egyptian market

Thanks to the restrictions imposed by the Russian Federation on its export wheat, Ukraine received favorable opportunities for selling grain to Egypt.

Ukraine received favorable opportunities to sell wheat to Egypt thanks to export restrictions imposed by Russia. This is reported by Reuters.

This week, the Egyptian Food Procurement Agency (GASC) purchased 290,000 tons of wheat, of which 120 thousand tons were from Ukraine, 120 thousand tons — from Romania and 50 thousand tons — from Bulgaria.

Russian companies did not participate in the deal because of unofficial restrictions that the country uses to curb rising prices in the domestic market. These measures include a minimum export price, tariffs and restrictions on foreign trading companies selling Russian grain.

“Thanks to Russia’s steps, Ukrainian grain has become more attractive for buyers, especially for those with limited financial resources, such as Egypt,” said one of the Ukrainian traders in a Reuters comment.

Thus, Russia’s restrictions have opened up more opportunities for Ukraine, which has already sold about 60% of its exports this year.

However, Egyptian trader Hesham Soliman believes that Russia is deliberately delaying deliveries, waiting for rising prices to increase profits.

Noamani Nasr, a former adviser to Egypt’s supply ministry, noted that Russia often restricts exports to regulate domestic prices.

“Paradoxically, this works to the advantage of her competitors,” Nasr said.

At the same time, Egypt’s Ministry of Supply reported that after this purchase, strategic wheat stocks will last for five months. However, traders predict that the country will be forced to make additional purchases in the near future.

The African country is likely to focus on buying grain from Romania, where farmers are storing some of this year’s harvest. On the other hand, in Ukraine and Bulgaria, grain stocks are gradually running out.

As USM wrote the day before, Egypt purchased 290,000 tons of Black Sea wheat, of which 120,000 tons of grain from Ukraine.