Egypt halts wheat on poppy seed fears

CAIRO — Egypt, the world’s biggest wheat buyer, has stopped another vessel from unloading on concern it may contain poppy seeds that are banned in the country.

The quarantine office halted a 60,000-ton cargo of French wheat sold by Casillo Commodities at Safaga over the weekend, and samples are being tested. The move came even as the French embassy said inspections at the port of origin confirmed the cargo met Egyptian specifications. Grain shipped by Romania’s CerealCom Dolj was held back last month for the same reason.

This isn’t the first time Egypt has stopped wheat cargoes for quality issues. Last season, the state-run buyer, the General Authority for Supply Commodities, turned back several shipments due to the presence of a common wheat fungus called ergot. That resulted in traders withdrawing offers or raising prices in tenders until the issue was resolved.

“The first Romanian cargo stopped was a surprise,” said Charles Clack, an analyst at Rabobank International in London. “A second delay could start to dent trader confidence and threatens reducing offers in the short term, at least until [Egypt’s state-run buyer] puts out a clearer stance on poppy seed contamination.”

The new holdups are reviving concerns over which government body is responsible for inspecting cargoes into Egypt. The nation in November issued a decree transferring inspections to a trade ministry body instead of quarantine officials, and it bans poppy seeds from entering as they can be used to make opium.