Egypt Grains, Cereal & Legumes insights

The state procurement agency Mostakbal Misr has signed several wheat supply agreements with European producers. Some of the deals are barter. They are intended to diversify food imports. The agency, which was transferred the powers of GASC at the end of last year, did not disclose data on the origin of grain, prices and volumes

The decline in international wheat prices may be due to favorable climate forecasts in major producing countries and signals of sufficient grain stocks in major importing countries. For example, Egypt reported that the country's wheat reserves are sufficient until the end of June 2025. Chinese data showed that the country harvested more than 700 million tons of all kinds of grain for the first time in history - 706.5 million tons. This allows Chinese state-owned enterprises to purchase 420 million tons of grain on the domestic market by the end of 2024. Currently, in northern Kazakhstan, the price of grade 3 wheat with an area content of 23% is 65,000 tenge/ton (including VAT). The price of high-quality wheat of the "Hi-Pro" grade (gluten content over 30%) is much higher - the price quoted by the granary is 125,000 tenge/ton (including VAT). In late autumn, wheat of this quality costs 110,000 tenge. Of course, since December, the tenge has depreciated by 15%, which has also had a certain impact on the rise in wheat prices. As for feed wheat, the price of fifth-grade wheat is 60,000 tenge/ton, and the price of second-grade barley is 50,000 tenge/ton (including VAT). The export price of Kazakh flour in the Afghan market is $230 (DAP Saryagash, delivery price at Saryagash station). In the domestic market, first-grade flour is sold at 130 tenge/kg, and high-grade flour at 160 tenge/kg.

European wheat futures rose on Monday in light year-end trade, supported by renewed weakness in the euro and earlier gains for Chicago grains, dealers said. Benchmark March milling wheat (BL2H5) on Paris-based Euronext was up 0.4% at 233.75 euros ($242.68) per metric ton by 1649 GMT. The contract earlier reached its highest in almost two weeks at 235.25 euros. Euronext will close early on Tuesday and remain shut on Wednesday for the New Year holiday. Chicago wheat also touched a two-week top on Monday while U.S. corn struck another six-month peak, before turning slightly lower as the dollar rose. Corresponding weakness in the euro, which fell back towards a two-year low against the dollar, helped Euronext prices. A backdrop of unfavourable crop conditions in Russia, and expectations that the country’s exports will slow, continued to underpin Euronext prices. Conditions for winter wheat crops will worsen in Russia’s Central and Volga areas in January, the state weather agency sai