Wedoany.com Report-Apr. 2, Egyptian corn imports are expected to slow due to an oversupply and an inflationary economy that has reduced consumer confidence, according to traders. The market currently holds approximately 1.5 to 1.6 million mt of corn, a significant amount that may lead to price adjustments.
Market participants have noted that Egypt has consistently imported large quantities of corn, with 1 million mt arriving for five consecutive months, far exceeding current demand. This has led to concerns about price stability. A trader mentioned that inflation has eroded purchasing power, making it unlikely that consumers will purchase large amounts of corn.
Domestically, corn continues to trade below replacement levels, with prices ranging from $8 to $10 per mt below costs. An importer highlighted that feed mills are buying corn at lower prices than imported levels, leading to significant losses for local importers. The trader emphasized that prices are still lagging behind international market trends, which are more volatile.
Local corn prices in February 2025 were reported as $240.85/mt for Ukrainian-origin corn and $250.75/mt for South American corn. CIF Egypt offers were last reported at around $256/mt on March 26. Platts assessed Ukraine corn FOB POC at $238/mt for April shipment and Brazilian corn FOB Santos at $211.41/mt for August loading.
A Cairo-based importer noted that the market has shifted, but volumes remain unusual. They believe that as stocks are depleted, prices may adjust. With the end of Ramadan and upcoming holidays, buyers are not rushing to secure corn for the next month. Prices are expected to rise after Ramadan as demand from the poultry industry increases. However, without utilizing stored stocks, the Egyptian market is likely to remain calm, particularly for spot cargoes.
