2017/18 prospects of Black Sea wheat in the Egyptian market

20.09.2017

Egypt will continue to be the top destination for Ukrainian wheat exports in the 2017/18 season. However, Black Sea wheat supplies to this market may get affected by tougher requirements of the state-owned GASC.

As a reminder, GASC tightened its protein content requirement for imported wheat by 0.5% for all supplying countries in May 2017. As a result, the wheat content standard for Ukrainian and Russian wheat was increased to 12.5%.

As the standard was altered late in the 2016/17 season, when Ukraine had already almost completely realized its export potential, the requirement toughening did not affect the previous season’s volumes.

Nevertheless, in the opinion of UkrAgroConsult analysts, this will have no substantial consequences for Ukraine in the 2017/18 season. We expect that Ukrainian wheat will manage to retain its position in this market in MY 2017/18 owing to deliveries by private importers and growth of Egypt’s need for foreign wheat.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

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