The US Department of Agriculture in a press statement on Monday said wheat futures are on the rise for the third time in four sessions. Egyptian demand for US grain has also grown recently, a result of a summer drought in Russia and Eastern Europe, as well as humid weather in Canada, according to the statement. The global shortage spurred Egypt to move from the 14th biggest importer of American wheat to the third position--following Japan and Nigeria. The statement said quoted wheat prices increased by five percent in Chicago's stock market, for quantities to be delivered in March 2011. The hike was triggered by consecutive surges in prices of basic commodities by 43 percent since June. The head of the grains sector at the Federation of Egyptian Industries, Ali Sharaf Eddin, said Egypt sees no alternative to US wheat in light of the shortage. The average wheat price stands at nearly LE2000 per ton, Sharaf Eddin told Al-Masry Al-Youm, while predicting a further increase to LE2500 in the coming period. Egypt has not purchased US wheat in recent years because officials have managed to broker deals for higher quality and cheaper-priced grain, particularly with Russia. One of the world's biggest wheat importers, Egypt suffers from a production-consumption gap, estimated by six million tons. Egypt's domestic wheat production stands at eight million, while its consumption reaches 14 million tons.
