Egypt’s GASC gets only one wheat offer after ergot rule change

Reuters

Egypt’s state grains buyer GASC received only one offer on Wednesday at its first wheat purchase since reinstating a zero-tolerance policy on ergot fungus, a near complete boycott that underscores the difficulty of sourcing grains under the rule.
A ban on the common grain fungus caused huge disruption to Egypt’s massive wheat imports earlier this year, with global trading houses declining to take part in its tenders.
The lone offer on Wednesday was submitted by trading house Venus for 55,000 tonnes of Ukrainian wheat at $179.32 a tonne on a free-on-board basis, they said.
Traders said that GASC may be forced to cancel the tender because of the poor response, though it is not legally required to do so.Having lifted the previous ban in July, Egypt announced on Sunday that it would be imposed once again despite suppliers’ insistence that it is virtually impossible to guarantee zero ergot content.
A document outlining wheat specifications for the tender closing on Wednesday stated that, in accordance with an agriculture ministry decision, the tolerance for ergot fungus in imported wheat should be zero percent.
Ergot can lead to hallucinations if eaten in large quantities but is considered harmless at low levels.
GASC, which has in the past used the common international standard of 0.05 percent ergot content, made no immediate comment. “My impression is that Egypt is testing to see if it is possible to undertake a purchase tender with zero ergot content,” one European trader said.
“Those who offer today would be fully aware of the risk if the zero content is confirmed.”