Family and friends of a young couple had hired the boat for an engagement party and were sailing north of Cairo when it was hit, eyewitnesses said.
Five of the party were rescued from the river but at least six were still missing on July 23.
The interior ministry said the bodies of four babies had been recovered. Several passengers are still missing.
The captain of the cargo boat has been arrested, police say.
It is not clear if the couple thought to be celebrating their engagement were among the dead.
Traffic had been heavy along the Nile, where many Egyptians had been celebrating the end of the holy month of Ramadan.
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