Challenges Facing European Wheat Exporters Amidst Moroccan Production Surge
Industry experts and analysts have indicated to Reuters that European wheat exporters are bracing for another challenging season this year, primarily due to intensified competition from Black Sea nations and expectations of reduced purchases from Morocco. The report suggests that European suppliers may increasingly need to diversify their sales across other regions in Africa, given their growing reliance on Moroccan demand. Donatas Jankauskas, a grain analyst at CM Navigator, emphasized that this year is unlikely to be straightforward for EU exporters, particularly if Black Sea wheat prices remain competitive while demand remains weak due to improved local harvests.
Looking ahead, Jankauskas anticipates a rise in total EU wheat exports for the 2026-2027 season, commencing in July, bolstered by substantial stockpiles and expected declines in production from Argentina and Australia. However, Reuters also pointed out that with abundant harvests likely in Russia and Ukraine, coupled with strong yields anticipated in importing nations like Turkey and Syria, the EU may face stiff competition in the market.
In the meantime, a German exporter noted that Morocco and West Africa are seen as critical markets, but it is difficult to envision where Western European wheat can be sold in large quantities given the competition from the Black Sea region. Furthermore, Morocco has already suspended the import of soft wheat from June 1 to July 31, in light of projections indicating domestic grain production could reach 9 million quintals, with over 50 percent of that being soft wheat. Moroccan professionals have reported an uptick in purchases of domestic products since mid-June.
Rising Domestic Demand and Strategic Storage Initiatives
Abdelkader Aloui, President of the National Federation of Mills and a board member of the National Office of Cereals and Pulses, confirmed that the planned suspension of soft wheat imports will last for two months, from June 1 until July 31. In an interview with Hespress, Aloui stated that industry stakeholders are currently focused on gathering as much domestically produced grain as possible, highlighting a notable increase in the pace of purchases of national products post-June 15. He raised concerns about the readiness of Moroccan farmers to sell their grain crops, noting that despite the national yield, it is expected to cover only 30 to 40 percent of national needs, meaning that the remaining 60 to 70 percent will indeed require imports.
Aloui also mentioned an initiative to build a strategic national reserve of 800,000 quintals of grain, which is predicated on a monthly investment of 200,000 quintals in production. In parallel, Omar El Yaqubi, President of the National Federation of Grain and Pulses Traders (FNCL), remarked that it is still premature to discuss the possibility of extending the suspension of soft wheat imports beyond July 31. When asked about the likelihood of this extension, El Yaqubi stated that it is too early to provide an opinion on the matter.
As reported by hespress.com.
