INTERVIEW-Egypt expects Jan shipments of Russian wheat after assurances on export curbs – RTRS | News | Thomson Reuters Eikon 12/29/2014

Alerts History

  • 29-Dec-2014 07:41 – EGYPT EXPECTS TO RECEIVE ALL RUSSIAN WHEAT CONTRACTED FOR JANUARY DELIVERY -SUPPLIES MINISTER
  • 29-Dec-2014 07:41 – EGYPT WILL KEEP RUSSIAN ORIGIN WHEAT IN ITS STATE IMPORT TENDERS FOR NOW – MINISTER
  • 29-Dec-2014 07:41 – EGYPT EXPECTS TO MAINTAIN WHEAT MOISTURE CONTENT LIMIT AT 13.5 PCT, IN POTENTIAL BOOST FOR FRENCH SUPPLIERS

INTERVIEW-Egypt expects Jan shipments of Russian wheat after assurances on export curbs – RTRS

29-Dec-2014 07:42

  • Minister says Egypt exempt from Russian curbs
  • Expects to receive all wheat bought for Jan. delivery
  • Says crisis proves need for planned global logistics hub
  • Expects to maintain wheat moisture content limit at 13.5 pct
  • Expects to maintain moisture limit at 13.5 pct

 

By Maggie Fick

CAIRO, Dec 29 (Reuters) – Egypt expects to receive all the Russian wheat it bought for January delivery after assurances from Moscow that steps taken to cool domestic prices would not hit supplies to the world’s biggest wheat buyer, Supplies Minister Khaled Hanafi said.

Russia, the world’s fourth-largest wheat exporter, introduced the informal grain export controls this month. The move had raised concerns that Russia may fail to supply wheat to Egypt’s state buyer GASC. (Full Story) (Full Story) (Full Story)

But Hanafi said Egypt would keep Russia as an origin in its import tenders as Egypt was exempt from the curbs.

“There is no problem until now and we have not received anything official from Russia contrary to this, so as we speak everything is going as usual,” Hanafi told Reuters.

Nevertheless, Egypt had alternatives and would accept offers based on dependability as well as cost, quality and timing, he said.

Egypt imports more than 10 million tonnes of wheat annually, with international purchases split roughly in half between the state and private sector. Its large state-buying tenders can move global wheat prices.

Earlier this month, GASC bought 60,000 tonnes of Russian wheat for Jan. 21-31 delivery and 120,000 tonnes for Jan. 11-20 delivery. (Full Story) (Full Story)

Hanafi told state newspaper Al-Ahram on Friday that Egypt expected to receive the 120,000 tonne shipment as planned.

He said on Monday he had spoken to Russian officials by telephone last week and received no indication that the 60,000 tonne contract would not be honoured, though he had not had specific conversations about that cargo.

Raising the prospect of steady imports from another of Egypt’s main suppliers, France, Hanafi said he would keep the official wheat moisture content limit at 13.5 percent when a measure adopted this year expires in February.

The government relaxed its moisture limits for imported wheat in June, a boost for French suppliers who struggled to meet more stringent specifications. (Full Story)

Hanafi said Russia’s export restrictions showed that Egypt should pursue its plans to build a commodities re-export and storage hub on the Mediterranean to help minimise exposure to market volatility.

Egypt unveiled in October a massive project to boost efficiency and slash its $4.5 billion annual food import billion. Multinational commodities companies say they worry about the plan’s ambition and lack of detail. (Full Story)

Hanafi said he saw potential for partnerships with major grain exporters like Russia in the planned hub, though he gave no details on how this would work.

“This proves that we have to have this hub. We must expect anything in the future and if we are safe and secure with this hub we are not going to be vulnerable to any fluctuations in the market,” he said.

“We might collaborate given the international conditions now… Egypt has a special relationship with Russia… there is great room for a win-win.”

 

(editing by Lin Noueihed, Veronica Brown and Susan Thomas) ((maggie.fick@thomsonreuters.com; +20 120 640 2000;))

 

Keywords: EGYPT GRAINS/RUSSIA

 

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