Egypt’s demand for cheap Black Sea wheat will continue as inflation puts pressure on the country’s economy

Egypt will continue to buy cheaper Black Sea wheat as inflation weighs heavily on the country’s economy, ASAP reports.

The conflict between Hamas and Israel is damaging the Suez Canal, which limits the country’s income. However, the latest IMF disbursements have helped to stabilize the economic situation in Egypt so far, providing some support to the trade sector.

“As Egypt is a price-driven market, the country will focus primarily on where prices are more attractive. Thus, Egypt’s demand for Black Sea wheat will continue, as this origin is almost always cheaper than European wheat,” the report said.

Russian wheat is more represented at GASC tenders. In addition, representatives of Russian companies are “knocking on the doors” of companies in Egypt, as well as GASC, to find a way to conclude direct contracts.

The expected increase in local wheat purchases (3.5 million tons planned by the government) will not be enough to refrain from importing wheat.

Tags: Egypt, Black Sea region, wheat, imports