Price speculation urges Egyptian Mercantile Exchange to suspend wheat trading

Moselhi stated that Egypt’s strategic reserve of wheat is sufficient for 4.2 months, according to a statement. 

“The decision to suspend trading on wheat in the EME aims to control the market and protect consumers, as some mills are overpricing flour products,” said Abdul-Ghaffar El-Salamouni, deputy head of the Chamber of Grain Production at the Federation of Egyptian Industries. 

El-Salamouni denied a shortage in the domestic wheat supply, adding that the fluctuation in the exchange rate is among the reasons behind the price speculation. 

The EME was established in January 2020 via a partnership between the Egyptian Exchange, the Internal Trade Development Authority, and the General Authority for Supply Commodities. 

Egypt’s wheat imports increased by over 14.5 percent to 11 million tons in 2023 compared to 9.6 million tons in 2022.

The country consumes up to 18 million tons of wheat annually. Cairo is expected to import 12 million tons of wheat during the current FY2023/2024, which started on 1 July, according to a report released by the Food and Agriculture Organization in July.