Ukraine Set to Overtake France as Morocco’s Leading Wheat Supplier, USDA Reports

According to USDA data, Ukraine could emerge as Morocco’s top wheat supplier. The US department states that this European country will benefit from dynamic import demand due to the weakness of domestic Moroccan supply as well as less competition on the international market.

Moroccan wheat imports are expected to reach a record volume of 6.5 million tons of wheat during the 2020/2021 season, about 35% more than imports in 2019/2020. "This significant increase was mainly due to the low domestic production and the suspension of import duties," it is noted.

In a context of a decline in the harvest to 2.5 million tons, or half of its five-year average, traditional suppliers (Russia and France) will be less competitive compared to Ukraine. Recent export tax hikes on Russian wheat have made the commodity more expensive. As for France, it is suffering from a weak harvest and a less favorable quality/price ratio, which will reduce its volumes shipped to Morocco.

Meanwhile, Ukraine has decided to enter duty-free until May 31 next of soft wheat cargoes. According to the USDA, the country has doubled its soft wheat exports to Morocco compared to the same period last year. All these assets will likely allow it to establish itself as Morocco’s top wheat supplier.