The political unrest in Egypt has led to an increase in world demand for Australian wheat.
A day before Egypt’s armed forces overthrew President Mohamed Morsi, the Egyptian Government made its first purchase on the world wheat market since February, buying 180,000 tonnes from Ukraine and Romania.
Director of advisory services for Ikon Commodities in Sydney, Ole Houe, says there’ll be better prospects for Australian wheat in countries like China.
“Just the fact there’s more demand will mean that some of our competitors and in particular the Black Sea competitor, who is a very cheap, aggressive competitor, will have some of their wheat going to Egypt instead of meeting us head on in Asia,” he said.
“(That) means it’s very good news for us that that demand is sucking up other competing grain.”
The head of Russia’s Grain Union said this week that it expects to account for half of Egypt’s wheat imports in the 2013-14 marketing year.
(Source – http://www.blackseagrain.net/about-ukragroconsult/news-bsg/egypt-troubles-boost-demand-for-australian-wheat-1)