2 days ago
Morocco Seeks to Capitalize on Wheat Prices Decline to Secure Five-Month Supply
Rabat – Morocco aims to boost its wheat imports and stockpiling to cover local needs for the next three to five months.
Abdelkader El Alaoui, President of the National Federation of Mill Owners, told SNRTnews that the North African country aims to capitalize on the decline in international wheat prices, especially soft wheat.
Alaoui said that global grain prices have been declining since May, which could prove beneficial for the North African country to strengthen its stockpiles, especially in soft wheat, which is primarily used to produce bread and pastries.
He said the reference price for delivering wheat to mills ranges between MAD 250 ($27.9) and MAD 255 per quintal, which halts the state subsidiary for the commodity as it is conditional that the cost per quintal exceeds MAD 270 ($30).
The expert emphasized that the government subsidy is granted in the form of compensation that covers the difference between the import cost and the field delivery price of MAD 270 ($30) per quintal.
The UN Food and Agriculture Organization (FAO) released an analysis in June, reporting wheat prices in the month of May.
'Global wheat export prices also declined month-on-month in May 2025, though less sharply than maize prices,' the analysis said, adding that the soft price tone was mainly driven by subdued global demand and generally good crop conditions.
In May, Minister of Agriculture Ahmed Bouari expected cereal production to reach 44 million quintals, up by 41% compared to last year.
Bouari said the sector appears to be regaining momentum, noting that the agricultural rate should stand at 5.1% this year, a significant turnaround from last season's 4% decline.
The higher performance is due to the significant rainfall that Morocco witnessed in the March-April period, reaching 295 millimeters.
This is positive news for Morocco, which has been suffering from alarming drought for six seasons in a row. The North African country has taken several measures to tackle the situation, including canceling the Eid Al Adha sacrificial ritual in June. Tags: Morocco wheatMorocco wheat import Ukraine
