Egypt sought to reassure wheat markets over its import requirements on Sunday after weeks of confusion over the allowed limits of a fungus rattled traders and prevented its state grain buyer from purchasing wheat in two successive tenders.
Egypt, the world's largest importer of wheat, has sent confusing messages to exporters in recent weeks, with agriculture authorities demanding a zero tolerance level for ergot, a common grains fungus, that traders say is impossible to guarantee.
In a joint press conference, the ministries of supply and agriculture denied there was ever a disagreement on the policy, and said they would accept all shipments of wheat that have less than 0.05 percent ergot.
"We are confirming that we did not change anything in Egyptian specifications and these are in line with world standards ... and we will accept anything in line with them and reject those not in line with them," supplies minister Khaled Hanafi said.
Traders have been reluctant to participate in state grain tenders after a 63,000-tonne shipment that arrived in Egypt in December was rejected by agricultural authorities for containing ergot.
Supplies Minister Khaled Hanafi confirmed on Sunday that authorities had rejected the French wheat shipment because it exceeded the permitted 0.05 level, though traders remain sceptical.
"The French shipment is a very technical issue. It is not related to ministry of supply. This is the inspectors who did their analysis that said it exceeded the 0.05 percent," Hanafi told Reuters.
The agriculture minister said Egypt was investigating how the rejected shipment had left French ports and reached Egypt with a level of ergot above the allowed limit.
Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), said on Sunday it was still negotiating a contract for the direct import of wheat outside of the regular tender process following two unsuccessful tenders.
"You saw the last tender the prices were $10 above market and that will not work," Mamdouh Abdel Fattah, GASC's vice chairman, told Reuters on the sidelines of a press conference.
GASC said last week it was negotiating a 3-million tonne direct contract following the first cancelled tender but did not give further details.