Wheat futures gained on Monday, as Egypt – a major wheat importer that heavily subsidizes the grain for its poorer population – looks likely to turn to the United States for a significant portion of its supplies.
With Russia's continued grain embargo putting pressure on commodities markets around the world and pushing up grain futures, Egypt has had to turn to new sources. Farmers in the United States will play a key role in supplying Egypt, "because they've essentially run out of other sources," Mike Zuzolo, the president of Global Commodity Analytics & Consulting, told Bloomberg.
On the Chicago Mercantile Exchange, wheat futures for December delivery rose 4 cents to 648 and 1/2 cents per bushel. December corn futures slipped 4 and 1/4 cents to 516 and 1/2 cents per bushel, and soybean futures for delivery in January 2011 climbed 13 and 1/2 cents to $12.15 per bushel.
The changing role of U.S. exports in the Egyptian grain market is evident in the numbers compiled by the news service; in the year ending on May 31, Egypt was the 14th-largest importer of U.S. wheat, but as of November 11, it ranked third behind Nigeria and Japan.
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