Source: Oleoscope (Russia)
Egypt will raise the purchase price of locally produced wheat to 2,500 pounds ($46.76) per ardeb (150 kg) for this year’s harvest. This new Egypt wheat procurement price marks a significant increase. Finance Minister Ahmed Kuchuk announced the decision during a press conference on April 1, Reuters reports.
Previous pricing and the new Egypt wheat procurement price
Previously, prices ranged from 2,250 to 2,350 pounds per ardeb, depending on quality. Consequently, this represents a slight increase of just over 11%.
State reserves target for local wheat
Overall, Egypt plans to purchase 5 million tons of locally produced wheat for its state reserves this year. Specifically, this is expected to exceed last year’s figure (approximately 3.9 million tons).
Strategic commodity stocks and market context
It was also reported that Egyptian Prime Minister Mostafa Madbouly, at the same press conference, estimated Egypt’s existing reserves of strategic commodities (wheat, edible oils, corn, oil, and gas) as sufficient to cover six months’ needs. However, he did not specify the stock levels of individual commodities. According to him, the government is working to increase reserves for another two or three months.
As a reminder, amid the unfolding crisis in the Middle East, commodity prices, including grains and oilseeds, have risen. For instance, wheat prices have reached seven-month highs. Furthermore, exports have exceeded last season’s levels and are on track for a record. Egypt, it’s worth noting, is one of the main importers of Russian grain.