Traders say EU wheat exports to Morocco get a tax break
Moroccan importers booked several loads of European Union wheat over the past few days, boosting EU exports amid fierce competition in the Black Sea so far this year, traders reported on Thursday.
According to traders, Moroccan buyers purchased up to 10 cargoes of milling grain for delivery in this month. This is around 300,000 tons.
They said that the majority of the wheat will come from the northern EU, such as the Baltic States, Germany and France.
These deals are in addition to two French wheat cargoes that were sold about two weeks ago. One of them is now loading in Rouen.
Demand came after EU wheat futures dropped to a 2-month low. Meanwhile, prices in Russia's main competitor have been trending higher as a result of reported efforts to regulate export prices.
Traders cautioned, however, that Russian wheat continued to gain sales, despite the fact that it is expected to surpass French wheat as the dominant wheat in Morocco during this season.
One European trader stated that "Morocco is buying. Eight to ten cargoes are booked, mainly from north EU." "But Russian prices have been lowered to remain competitive."
The EU's wheat exports are about a third lower than last year due to the Black Sea competition, a wet harvest in the EU, and the smallest French harvest since the 1980s.
Another trader stated that the ongoing import needs of Morocco, following a reduced harvest due to the drought this year, and the increase in the monthly subsidy for wheat imported by the state in November, were the main reasons behind the recent demand.
The EU has been forced to find new export outlets for its wheat, as Russian wheat has taken away France's position as the leading supplier of wheat to Algeria.
French prospects for Algeria have been further clouded by diplomatic tensions. Traders said Algeria ignored France in its wheat tenders, but the Algerian grain agency OAIC claimed it treated all suppliers equally. Reporting by Gus Trompiz from Paris and Michael Hogan from Hamburg, with editing by Mark Potter.
(source: Reuters)
