Argentina Said to Get Approval for Egypt-Bound Wheat Cargoes

Egypt, the world’s biggest buyer of wheat, approved the first shipments of the grain from Argentina in more than three years, according to two people with knowledge of the matter.

Two 60,000-metric-ton cargoes were inspected at the Argentine port of Bahia Blanca by a delegation from Egypt, said the people, who asked not to be identified because they’re not authorized to discuss the information. The grain was supplied by trading company Louis Dreyfus Commodities BV.
The approval of the two cargoes comes the same week Egypt rejected a French wheat cargo shipped by trader Bunge Ltd. because of contamination with ergot, a fungus that can cause health problems. That raised concerns about how traders will supply the North African country. The delegation examining the wheat that’s ready for loading in Argentina included Egyptian employees from inspection company Intertek Group Plc, who found no ergot, according to one of the people. The Intertek workers will remain in Argentina until the grain is shipped, the person said.

Egyptian officials routinely travel to exporting countries to inspect shipments before the cargo departs. The General Authority for Supply Commodities, or GASC, the Egyptian agency responsible for purchasing food imports, said last month it bought the 120,000 tons of Argentine wheat following a tender at an average price of $190.94 a ton including freight.