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Inspection Concerns Unnerve Wheat Traders- Know why

The world’s largest wheat purchaser Egypt has a long history of preventing vessels from emptying on concern it might contain poppy seeds or ergot fungus that are restricted in the nation. Egyptian authorities stopped a 59,000-metric-ton load of French wheat at Safaga in September 2017. According to media reports, the case was referred to prosecution. The move had come even after the French Embassy in Cairo conveyed Egypt that inspection at the loading port demonstrated the wheat shipment met Egyptian specifications. Grain dispatched by Romania’s CerealCom Dolj was also held back at the same port some months back and the reason was same. This was not the first time Egypt halted wheat cargoes for quality issues. In 2016, the country turned back a few shipments bought by a state-run buyer. The General Authority for Supply Commodities claimed the presence of a typical parasite called ergot in the wheat. As a result of it, many traders withdrew offers and some raised prices till the issue was resolved. “The Romanian cargo halt was really a surprise,” said Charles Clack, an expert at Rabobank International in London. He said second such attempt can lead to more confusion and distrust and Romania can stop exporting wheat to Egypt, till the country don’t come with a clear stance on ergot fungus and poppy seed in wheat.

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The fresh episodes of halting wheat Shipments revived concerns over which government body is solely responsible for checking cargoes in Egypt. The country in November 2017 issued a new declaration, according to which now trade ministry body will be checking the wheat cargoes at receiving port, not quarantine officials. Egyptian trader have also experienced issues at origin ports. Vessel Wadi Sudr transporting grain from Archer-Daniels-Midland Co. was held back at Constanta because of worries over poppy seeds, as indicated by a man on the basis of anonymity.

CerealCom additionally had a vessel held back at the Romanian port. The merchant put 20,000 tons of wheat on the bulk carrier Edfu was requested to empty because of worries about poppy seeds, said Mihai Andrei Anghel, in charge of International trading at the Romanian firm. The inspection agency had discovered exhaust poppy seed units, he said. “I have no issue to release the shipment, yet the cost must be guaranteed by GASC,” he stated, including the organization met its legally binding commitments. “The load without poppy seeds will have a different cost,” he added. “Any nation is being referred to,” Sizov Jr. said by telephone. “There’s always a risk involved that inspection agencies will discover something wrong in this or that cargo.” Source: https://ashrafelattal.wordpress.com/2018/04/26/inspection-concerns-unnerve-wheattraders-know-why/

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Inspection Concerns Unnerve Wheat Traders- Know why  

Egyptian trader have also experienced issues at origin ports. Vessel Wadi Sudr transporting grain from Archer-Daniels-Midland Co. was held b...

Inspection Concerns Unnerve Wheat Traders- Know why  

Egyptian trader have also experienced issues at origin ports. Vessel Wadi Sudr transporting grain from Archer-Daniels-Midland Co. was held b...

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