Egypt to reduce corn imports amid oversupply, inflation concerns

Egyptian corn imports are expected to slow amid oversupply and an inflationary economy that has sapped consumer confidence, according to traders. Market participants said that approximately 1.5 million to 1.6 million mt of corn is currently available.

Egypt has consistently imported large quantities of corn in anticipation of the Ramadan season that runs from Feb. 28 to March 29. An importer noted that 1 million mt of corn has arrived for five consecutive months, exceeding current demand.

“Egypt is in an inflationary period, and purchasing power has already declined. I don’t think people will buy much because they have been losing money for the past two months,” an Egypt-based trader said.

Additionally, in the domestic market, corn continues to trade well below replacement levels, currently around $8/mt to $10/mt below replacement costs. A second importer from Cairo said that the prices at which corn is sold to feed mills are lower than imported prices, leading to significant losses for corn importers in the country.

“Prices are still lagging behind the international market. International market prices are moving, while the domestic market in Egypt continues to decline without any logical explanation,” another importer from Egypt said.

Local corn prices at the end of February 2025 were reported at $240.85/mt for Ukrainian origin, compared to $250.75/mt for South American corn.

Meanwhile, CIF Egypt offers were last reported to Platts at around $256/mt March 26. Platts assessed Ukraine corn FOB POC at $238/mt on March 26 for shipping April 23 – May 7 and Brazilian corn FOB Santos at $211.41/mt for August loading.

A Cairo-based importer said, “The market has shifted, but not at the usual volumes. I believe prices might adjust once those stocks are depleted.”

With the end of Ramadan and the upcoming holidays, buyers are not in a hurry to secure their corn needs beyond April. Prices are expected to recover after Ramadan as demand from the poultry industry increases. However, unless the stored stocks are utilized, the Egyptian market is likely to remain quiet, particularly for spot cargoes.

Tags: Egypt, corn