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Biggest Wheat Importer May Turn to Hedging After Price Spike

  • Egypt is in the early stages of discussing a hedging program
  • Global wheat prices hit a 3-year high after severe droughts
Wheat Harvest By Russian Agricultural Producer Ros Agro Plc Group
Photographer: Andrey Rudakov/Bloomberg
Updated on

To cope with a sudden spike in wheat prices, the world’s biggest importing nation is considering an unusual tactic: price hedging.

Egypt, which relies on subsidized wheat to feed millions of people, is in the early stages of discussing a plan to hedge against price increases, according to Finance Minister Mohamed Maait. The country is paying more for imports after severe droughts in Europe and Australia ruined crops, with benchmark wheat futures in Chicago reaching a three-year high earlier this year.