Wheat traders are pleased by Egypt’s new wheat inspection process that will likely be easier to navigate and may lead to lower prices. Bloomberg reports Egypt’s General Organization for Export and Import Control will be the sole state body responsible for wheat inspections at shipping and arrival ports, replacing government inspectors. The move follows a boycott by traders who refused to tender wheat for export to Egypt over an ergot fungus contamination zero tolerance policy that was enforced twice this year by the nation. The global standard contamination limit of ergot is .05 percent. The inspection process replaces the previous system that required approval from three different government bodies, each with their own standards. Egypt is the worlds biggest wheat buyer and the new process will likely lead to lower prices for the country, according to traders, because they will not need to factor in a high-risk premium.
From the National Association of Farm Broadcasting news service.