Moroccan importers have recently secured multiple shipments of European Union wheat, providing a much-needed boost to EU exports. The move comes as the region faces stiff competition from Black Sea suppliers, particularly Russia.
Traders estimate that Moroccan buyers purchased approximately 10 cargoes, or 300,000 metric tons, of milling wheat over the past week. These shipments are scheduled for delivery this month.
The majority of the wheat is expected to originate from Northern European countries such as the Baltic States and Germany, with additional supplies coming from France. These purchases complement a couple of French wheat cargoes sold around two weeks ago, one of which is set to load in Rouen.
The surge in demand from Morocco coincides with a decline in EU wheat futures to a two-month low. Meanwhile, prices in Russia, a major competitor, have trended upward due to potential export price regulations.
However, traders caution that Russian wheat remains a significant player in the Moroccan market. Despite the recent EU purchases, Russian wheat is still projected to surpass French wheat in terms of market share in Morocco this season.
“Morocco has been actively buying, with eight to 10 cargoes booked primarily from Northern Europe,” one European trader confirmed. “However, Russian prices have been adjusted to maintain competitiveness.”
The combined factors of intense competition from the Black Sea region and a rain-affected EU harvest, including a historically low French crop, have significantly impacted EU wheat exports. These exports are currently running at about a third of last season’s level.
Morocco’s increased import requirements, driven by a drought-reduced domestic harvest and a recent increase in the state’s monthly wheat import subsidy, have contributed to the latest demand.
Morocco has emerged as a crucial export market for EU wheat, particularly as Russian wheat has eroded France’s traditional dominance as a supplier to Algeria. Diplomatic tensions between France and Algeria have further complicated French export prospects, as evidenced by Algeria’s decision to overlook French wheat in recent tenders.