The EGX30 index opened Thursday’s session down more than 2.5%, amid the Russian-Ukrainian crisis, & closed down 3.63%.
The EGX70 index saw a much sharper fall, dropping more than 9% on Thursday.
Market capital losses were estimated at about EGP 21 billion during the first 30 minutes of Thursday’s trading session, dropping from EGP 713 billion to EGP 692 billion.
Arab Stock Exchange Indices Turn Red🟥 Meanwhile, Gulf stock exchanges indices turned red, as the Saudi stock market (Tadawul) declined by about 2% at the beginning of Thursday’s session.
Dubai Financial Market fell by 2.4%, Abu Dhabi Securities Exchange (ADX) by 1.1% & Kuwait Stock Exchange by 0.7%.
Wheat Imports from Russia & Ukraine🌾 Russia contributed nearly 50% of wheat supply to Egypt in 2021, while Ukraine contributed 30%, making them the largest wheat supplier to Egypt during 2021.
Russia and Ukraine export more than 25% of the world’s wheat, according to The Observatory of Economic Complexity (OEC).
The Ministry of Supply also worked to diversify the sources of Egypt’s imports of wheat during 2021, as it imported wheat from Latvia for the first time & is studying importing from countries such as France, Canada & the US.
The escalation of the conflict between Russia and Ukraine is expected to lead to global hikes in food prices.
Wheat Prices Rise Immediately🌾 The price of wheat jumped 5.65% to $934.75 per bushel.
The price of corn jumped 5.14% to $716.25 a bushel.
A bushel?🤔 A bushel is a measure of dry volume, used mostly for agricultural products, such as wheat.
Global wheat price hikes are expected to cost Egypt an additional EGP 12 billion this fiscal year, according to Reuters.
Egypt is the largest importer of wheat in the world, importing more than 12 million tons of wheat annually.
Diversifying Importing Sources🔱 Nader Saad, the Egyptian Cabinet spokesman, confirmed that Egypt has a stockpile of wheat sufficient for 5 months, with the approach of wheat harvest season on the horizon, there will be enough stockpile for another 4 months.
Saad also pointed out that Egypt has 14 other countries from which it can import wheat, including the US, Argentina, Canada, and Paraguay. It is not certain, however, that these countries can fill the wheat shortage.