Morocco to import more soft wheat to meet shortfall amid drought

Drought-hit Morocco is expected to step up its soft wheat imports to 5 million tonnes in the 2023-2024 season, including Russian grain, traders said.

Morocco expects to have imported 2.5 million tonnes of soft wheat by September, but will need another 2.5 million tonnes to the end of June 2024, said Omar Yacoubi, head of Morocco’s grain and cereals traders federation FNCL.

Following a below-average domestic crop and high global prices, Morocco has extended import subsidies for all wheat from July to September regardless of origin to encourage importers.

Two ships are already on their way to Morocco from Russia loaded with 100,000 tonnes of wheat, said Abdelkader Alaoui, head of the industrial millers federation FNM.

While Russian prices remain competitive, importers face difficulties making payments because of Western sanctions on Russia, he said.

Russian-origin grain would represent about 5% of Morocco’s wheat imports, most of which will be sourced from the European Union, especially France, Alaoui said.

Wheat inventories covered around 5 months of domestic consumption needs up to late August, with a slight growth of storage capacity to 5.2 milion tonnes, he said.

Morocco’s government encouraged operators last year to further increase wheat stockpiles beyond five months.

However “current prices are not conducive to increase stockpiles,” said Alaoui.

“Even with the current zero customs-duty rate, prices in the international market are still too high to build up additional stocks,” he said.

Tags: prices, European Union, drought, crop, imports, Morocco, soft wheat, Russia