Global Hot Spots: Egypt outlines acceptable wheat fungus limits

Global Hot Spots: Egypt outlines acceptable wheat fungus limits

India wheat production lower for second year.

Egypt outlines acceptable fungus limits in wheat - Reuters

Hoping to quell supplier concerns about wheat, Egypt’s agriculture ministry this week sent a letter to traders saying that it will allow 0.05% of ergot fungus in wheat imports, according to a Reuters report.

The letter’s intent was to encourage suppliers to make offers when Egypt tenders for imports of the grain.

Russian wheat is at risk from ice; Argentina is expecting good-yielding wheat.

Egypt is the world’s largest importer of wheat but has had to cancel tenders due to a lack of offers as suppliers are wary about the country’s tolerance rules for the fungus. While the latest letter may ease some concerns, a few traders quoted by Reuters said the letter needed to be from the quarantine authority rather than the agriculture ministry to “be completely covered.”

India wheat production seen lower for second year - attache

Wheat production in 2016 is expected to be down in India for the second straight year due to an expected 4% drop in planted acreage, USDA’s attache said.

“2016 wheat planting began in October under poor soil moisture availability for sowing (October-Mid-December) due to deficit and early withdrawal of 2015 monsoon. Deficient to scanty rainfall across the major wheat growing areas (northwest and central India) affected progress of planting, crop establishment and early crop growth due to antecedent soil moisture stress,” the report said.

Also, above-normal temperatures in December and January affected crop growth and may lead to lower yields.

“Trade sources estimate the crop in the range of 75 million to 84 million tons assuming various weather conditions scenario from now through harvest,” it said. The previous crop was 88.94 million metric tons.


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TAGS: USDA
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