File Photo: General view of a wheat field in Egypt s Beheira. Reuters
Domestically, The Egyptian government hopes to purchase four million tons of local wheat during the current harvest season which started in April.
The government has increased local wheat procurement price by 20 percent to EGP 1,500 per ardeb (150 kg) for the current harvest season to incentivize farmers to supply to the state.
The Ministry of Supply announced in May that the country's current wheat stock amounted to 2.7 million tons, which is enough for six months.
Global production outlook
Meanwhile, the FAO forecasts that global wheat production to decline by 3 percent year-on-year to 777 million tons in 2023.
The decline in global wheat production will be the result of a drop of the production of Australia (28.1 percent), Russia (19.3 percent), Ukraine (15.8 percent) and Kazakhstan (14 percent).
Wheat prices have declined globally despite reduced exports from the two major producers, Russia and Ukraine with some economists attributing this decline to sluggish global growth.