Egyptian Importers Delay Ukrainian Wheat Purchases Amid Surging Prices

Ukrainian wheat prices have surged in recent weeks, prompting Egyptian importers to delay purchases. According to ASAP Agri experts, Egypt's wheat imports decreased from 1.29 million tons in August last year to 0.68 million tons this August. The offer price for Ukrainian wheat with 11.5% protein delivered in bulk to CIF Egypt increased by $40-45/t to $300-305/t over the past month.

The higher prices are due in part to rising wheat costs, which are outpacing flour prices. This has led to a sharp drop in processing margins for mills producing flour for re-export. As a result, many importers have stopped purchasing wheat, waiting for their own harvest to come online and the resumption of exports from the Black Sea.

However, experts warn that the Black Sea ports may not resume operations by the end of the year, which would continue to drive up prices. Additionally, high freight costs are reducing the competitiveness of Ukrainian wheat exported through Danube ports. The queue to enter the Sulin Canal has already accumulated about 100 vessels, further limiting availability.