Egypt Abandons Russian Wheat Amid Ukraine Port Blockade

Egypt's state buyer is shifting its wheat purchases away from Russia in response to Ukraine's blockade of Russian ports. The country plans to buy 500,000 tons of wheat from France, Bulgaria, and Kazakhstan instead. This move comes after Egypt purchased 300,000 tons of Russian wheat at a price of $250/ton on August 2.

The main reason for this change is Ukraine's blockade of Russian ports in response to the shelling of Black Sea ports by Russia. The blockade has disrupted trade and led to an unofficial minimum price set by the Russian government for its exporters to support the market.

Russia had become the dominant player on the global market due to its record harvests, but the oversupply is putting pressure on domestic prices. Egypt, being the world's largest wheat importer, is heavily dependent on Russian grain and usually purchases almost all of its wheat through the State Supply Administration.