International grain trader Bunge has commenced legal proceedings against Egypt’s General Authority for Supply Commodites following the recent rejection of a wheat cargo. The Financial Times reports the rejection of Bunge’s cargo last month because there were traces of ergot, despite the country’s grain authority allowing for 0.05 percent, created confusion and frustration among the wheat trading community. Wheat traders boycotted tenders by Egypt out of fear of rejection of further shipments. The Egyptian government is the top buyer of wheat and an important customer to many of the leading agricultural traders. However, Bunge claims quality certificates – signed by a surveyor nominated and appointed by Egypt – completely conform to the tender terms that allow a maximum of 0.05 percent ergot at loading, meaning the cargos should have been allowed to enter the country.
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