Morocco has become the largest outlet for European Union wheat exports for the 2022-2023 season after sales to other markets were disrupted due to the renewed competition from Black Sea exports as the war subsided. In a year marked by Russia's invasion of Ukraine, a significant grain exporter, the EU ramped up its sales in July and June as importers sought alternatives to Black Sea grains. With the need for imports rising after a harvest season affected by last year's drought, Morocco has taken on a larger-than-usual role in importing EU wheat, overtaking Algeria as the main destination for the bloc's exports.
Jan Libo from the Intercereal group in the French grain industry noted that Morocco intends to import an additional 1.5 million tons of soft wheat between March and May, and buyers are expected to turn to EU supplies due to the logistical and financial risks associated with Ukrainian and Russian grains. The steady demand from Morocco and significant sales to Algeria, China, and Egypt have helped France, the largest wheat producer in the EU, sell most of its export surplus, estimated at just over 10 million tons, to non-EU countries.
A trader remarked, "The French market has performed better by selling a large volume early in the season." Competition from the Black Sea resurfaced in the middle of the season after a wartime corridor supported Ukrainian shipments, and Russia found outlets for its record crop in 2022. The diminishing export prospects have caused wheat futures prices in Europe and the United States to reach their lowest levels since 2021 this week.
