Morocco's grain import authority ONICL said it has a record level of year-end wheat stocks, enough to ensure a normal supply of the domestic market, even after skipping international purchases for several months. ONICL also said soft wheat stocks look set to close the year at 1.6 million tonnes, or enough to cover four months of milling needs.
"This level of year-end stocks is an all-time record compared to all previous campaigns," ONICL said in a statement on Friday. ONICL said, "the domestic market has plenty of local and imported wheat." Local millers, traders and silos have collected almost half - or 2.1 million tonnes - the soft wheat that was produced in the 2011 farming campaign, it said.
"The collection (of locally-produced soft wheat) is continuing at a normal pace," it added. Morocco produced this year 4.17 million tonnes of soft wheat and 1.85 million tonnes of durum wheat, respectively 30 and 16 percent above the previous campaign.
However, the increases have little impact on the supply of the domestic market since the majority of planted areas are small properties owned by farmers who use the harvest for their own subsistence. About a quarter of 2010 harvest went to the market, according to official statistics. The state offers local farmers 2,900 dirhams per tonne for standard quality soft wheat. "Wheat supplies now can easily keep domestic prices in line with the target level (2,900 dirhams per tonne)," ONICL added.