Opium seeds spook wheat traders as Egypt holds back cargoes

The world’s biggest wheat buyer Egypt risks facing tender boycotts for a second season after it stopped another vessel from unloading on concern it may contain poppy seeds that are banned in the country.

The quarantine office halted a 59,000-metric-ton cargo of French wheat sold by Casillo Commodities at Safaga over the weekend, and the case will be referred to prosecution, said Naglaa Balabel, head of the agency. The move came even as the French embassy in Cairo said inspections at the loading port showed the cargo met Egyptian specifications. Grain shipped by Romania’s CerealCom Dolj was also held back last month at the same port for that reason.

This isn’t the first time Egypt has stopped wheat cargoes for quality issues. Last season, the nation turned back several shipments purchased by state-run buyer, the General Authority for Supply Commodities, due to the presence of a common wheat fungus called ergot. That resulted in traders withdrawing offers or raising prices in tenders until the issue was resolved.