Egypt corn imports to slow amid oversupply and weak poultry feed demand

Egypt's corn imports are expected to slow this month as heavy stocks of South American corn, weak demand from the poultry feed sector and falling domestic prices continue to pressure traders' margins, importers said.

According to local shipping data from LATT Trading & Shipping, Egypt's corn imports fell 56% in May to around 658,150 metric tons. Argentine corn was the only origin imported during the month.

Traders said Egyptian ports and warehouses remain well supplied with South American corn, creating an oversupply in the domestic market. They estimated that around 1 million mt of corn is already in storage, further pressuring local prices.

"The stocks at warehouses are still high. Local prices are still going down because of weak demand and a lot of offers everywhere," a Cairo-based importer said. The importer added that international replacement costs remain above local market prices, leaving traders with negative margins.

Another Egyptian trader said the oversupply has built up over the past two months, alongside persistently poor demand.

"Private buyers bought three times their capacity, so the country became oversupplied while demand remained weak. Prices are not picking up," the trader said.

Weak demand for corn is largely being driven by pressure in Egypt's poultry sector. Traders said a high supply of eggs and poultry products has slowed poultry feed production, reducing demand for corn, which is a key raw material in feed manufacturing.

"The situation is also being affected by the temporary shutdown of many poultry farms, reducing consumption and overall demand," a third Egyptian trader said.

The decline in poultry prices, combined with a sharp drop in egg prices, is putting significant pressure on producers. The trader said eggs currently cost around Egyptian Pounds 125 to produce but are being sold in the market at an average of only EGP 70.

Egg production is currently exceeding market demand by about 40%, further weighing on prices and profitability across the poultry sector, corn traders said.

As a result, many small and medium-sized poultry growers have paused breeding and production, reducing their need for poultry feed and further weakening corn demand.

Ukraine and South America are typically the major corn origins for the Egyptian market. Platts assessed Ukraine corn FOB POC at $230/mt for July 13-27 loading, Argentine corn FOB Up River Argentina at $201.38/mt for July loading, and Brazilian corn FOB Santos at $213.67/mt for August loading on June 15.