DAILY BASKET – NEWS COMMENTARY
Egypt and Russian Arm Wrestling Over Wheat?
MARSAL COMMENTS: Egypt recently rejected a Russian Wheat shipment, then forbade the unloading of another. To-date, it has stopped seven shipments, claiming problems with wheat specs. Accordingly, it is changing the rules for import.
On the opposite side, the Russian wheat export association claimed that it is an Egyptian ploy to reduce prices, which had recently gone up. Some also claim that this not the first time that Egypt rejected Russian wheat, as a similar incident occurred in 2006 when the wheat was claimed to be contaminated but could not determine the source of contamination.
Egypt is the world’s biggest importer of wheat and the biggest buyer from Russia, followed by Turkey, and their recent pressure has actually resulted in a small drop in prices!
NEGATIVE FOR: Russia and Egypt
POSITIVE FOR: For any one that desires a souring of relations between Russia and Egypt.
IMPACT POTENTIAL: Low
TIME SCOPE: Short Term