Wheat prices in Egypt soar amid currency volatility, war disruptions

 Wheat prices in Egypt have climbed sharply in recent weeks as a combination of Egyptian pound depreciation, tighter global supplies from the Black Sea region and logistical disruptions linked to ongoing conflict have pushed import and domestic spot values upward, according to a Platts report from S&P Global Commodity Insights.

The report highlights that Egypt, one of the world’s largest wheat importers, is particularly exposed to currency fluctuations and international supply shocks, which quickly translate into higher local market prices and inflationary pressure on staple foods.

Wheat prices in Egypt have surged to record highs as a depreciating currency, higher fuel costs and mounting logistics problems ripple through the country’s grain market in the wake of the war in the Middle East.

Local wheat prices for 12.5% protein, exwarehouse, have jumped from Egyptian pounds 12,400/metric tonne to 14,300/metric tonne since the conflict began on February 28, according to several market participants.

The sharp rise has coincided with a steep depreciation of the Egyptian pound, which has fallen about 9.4% since the start of the war to 52.39 EGP per US dollar on March 13, its weakest level on record.