Private importers in Morocco last week bought up to 400,000 tonnes of milling wheat from several origins, including Ukraine and Russia at the seller's option, European traders said. This was sufficient to meet local needs until April 30 when a period of no duty on wheat import ends, they added, noting that they do not think that this will be extended.
"With these purchases, Moroccan importers are extremely well covered and the rise in prices (on global markets) could discourage them to buy more," one European trader said. European milling wheat futures have jumped 7 percent this month, mainly buoyed by the political crisis in Ukraine, one of the world's largest grain exporters. Morocco sped up purchases on fears that prices could rise further if the stand-off between Ukraine and Russia over the Black Sea region of Crimea was to disrupt exports and spring sowing, traders said. Moroccan importers also purchased some French and German origins last week, they said. A weaker rouble and hryvnia in recent weeks have made Russian and Ukrainian wheat more competitive on the markets of North and West Africa.
Some traders said that at the time of the deals the price advantage for Black Sea origins was up to $10, cost and freight included, compared to French wheat, by far the main supplier to Morocco so far this season. A lower outlook for French wheat exports prompted French farm office FranceAgriMer on Wednesday to raise its estimate of the country's soft wheat stocks at the end of the 2013/2014 season. Morocco decided to suspend its customs duty on imports of soft wheat from January 1 to Apr.30 in November last year to ensure more supply to the domestic market after raising them to 45 percent from August to the end of 2013 put pressure on local stocks.
