USDA revises 2017/18 Egyptian corn consumption down by 4%


The USDA moved its estimate for Egyptian corn consumption down by 600,000 mt to 15.3 million mt for the season to September 2018, amid increases in domestic feed prices, the department reported late Friday.

That reduction in consumption translates into a 600,000 mt drop into Egyptian corn imports during the current season, which are now estimated at 9.4 million mt.

“We attribute the drop in imports to a 15-20% reduction in Egyptian consumption of poultry, red meat, and dairy products; the aftershocks of the November 2016 devaluation and floating of the pound are still felt,” the USDA said.

Domestic poultry feed prices, consisting of 70% corn and 19.4% soybean meal, moved up from EGP 6,000/mt ($340/mt) to EGP 7,000/mt ($397/mt).

With inflation in January falling to 17.1% from 33.2% in August 2017, the USDA expects “purchasing power recovery leading to increased consumption strengthening corn imports”.

Egyptian feed manufacturing mills produce a poultry feed mix consisting of 70% yellow corn, 19.4% soybean meal, 3.4% wheat bran, and 1.9% broiler concentrates.

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