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Egypt's Wheat Supply Adequate - Official

FILE: In this Monday, April 11, 2016 photo, Egyptian farmers stand in front of wheat crops on their land in Kafr Hamouda village, in Zagazig, 63 miles (100 kilometers) northeast of Cairo.

Global events may temporarily affect Egypt's wheat supply but the country can adjust to them, Egypt's supply minister Ali Moselhy told Reuters on Tuesday when asked whether Russia's decision to freeze its participation in a U.N.-brokered grain export deal would affect its supply.

While stating that Egypt's wheat supply may be tenuous due to outside situations, Minister Ali Moselhy said the global supply of wheat available is sufficient to meet the world's needs.

Egypt, one of the world's largest wheat importers, has not issued international purchasing tenders since mid-July, opting to buy directly from trading houses instead.

But observers say that buying from brokers subjects the nation to price fluctuations, especially spikes, as outside conditions drive the cost of the essential grain. Tenders supply at a fixed, agreed-upon price.

Moscow said on Saturday it was suspending its participation in a U.N.-brokered grain export deal after an attack on its Black Sea fleet. Ukraine has neither confirmed nor denied whether it was behind that attack.

As a result wheat prices have skyrocketed amid the conflict between Russia and Ukraine, two countries from which Egypt used to buy the majority of its wheat.