UPDATE 1-INTERVIEW-Morocco to stock wheat against market swings

Published 09/30/2010, 01:41 PM
Updated 09/30/2010, 01:44 PM

* Traders say Morocco needs at least 1.2 mln tonne stocks

* Approved imports of 1.2 million tonnes mid-Sept to end-Dec

(Adds details, background)

By Lamine Ghanmi

RABAT, Sept 30 (Reuters) - Morocco will maintain a roughly three-month reserve of soft wheat in its stockpiles between now and May to guard against uncertainty on the world grain market, the head of the state grain agency told Reuters on Thursday.

Aziz Abdelali, managing director of Morocco's ONICL, said the country would import soft wheat as needed to keep the stockpile topped up, although he did not give a figure.

"We will maintain our soft wheat stocks at a high level until May as we are not certain about the evolution of the international market until then," he said.

"The stocks level should remain high enough to meet the needs of the domestic market and domestic consumption for 2-1/2 to three months," Abdelali said.

"I cannot give a figure for the total imports until May or June, but I can tell you we will keep importing soft wheat to maintain the high level of stocks while meeting market needs," he said.

Local traders say Morocco, the world's tenth-biggest grain importer, would need to build a stockpile of at least 1.2 million tonnes of soft wheat for it to supply the country for 2-1/2 to three months.

World grain prices have soared since major exporter Russia, its harvest badly affected by drought, imposed a moratorium on grain exports.

Early this month, ONICL approved the import of 1.2 million tonnes of soft milling wheat over the period Sept. 16 to Dec. 31.

Bad weather slashed Morocco's harvest this year to 7.46 million tonnes from a record 10.2 million last year. The government has scrapped customs duty on imports of soft wheat from Sept. 16 to Dec. 31, a step it takes regularly when it wants to step up imports.

Economic and General Affairs Minister Nizar Baraka told Reuters early in September Morocco would import a total of 2 million tonnes of soft wheat until the next harvest.

Pressed to say whether 2 million tonnes of soft would be sufficient to cover Morocco's consumption needs until May while maintaining its stocks high, Abdelali said: "My duty is to keep the stocks high and satisfy the needs of the market, and for that we will keep up the pace of imports to meet the two goals."

Asked again if Morocco's soft wheat imports would come at the end higher than 2 million, he said: "I cannot tell a figure. We are mulling over that right now and we are in talks with millers about that. That's why I cannot give figures."

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