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Sunday, 14 April 2019

Egypt accepts previously rejected French wheat, purchases 240k tonnes in int’l tender

What is it, 2016 again? A 63k tonne shipment of French wheat that authorities rejected last week for ergot contamination has been accepted after re-testing, according to Reuters. The supplier requested the re-test after earlier results showed a 0.1% ergot level, higher than the 0.05% allowed by Egypt’s state tender rules and international standards. The new test, meanwhile, revealed a 0.01% ergot level. The shipment will now be offloaded and distributed after being held at Safaga port since it’s arrival last week.

Background: Egypt instituted a zero-tolerance policy for ergot contamination in 2016, throwing a wrench in the global wheat market. With state institutions at loggerheads over whether to ban wheat with ergot contamination, the Higher Administrative Court decided last year to strike down the zero-tolerance policy, allowing imports with up to 0.05% ergot contamination.

In other commodity news, Egypt purchased 180k tonnes of Romanian and 60k tonnes of Ukrainian wheat in an international tender held on Friday by GASC, reports Reuters.

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