Algeria buys around 600 thsd tons of wheat in international tender

Algeria’s state grains agency, OAIC, has purchased approximately 600,000 tons of wheat in an international tender that closed on Wednesday, October 22. European traders noted that this figure represents the upper end of earlier estimates, which ranged from 500,000 to 600,000 tons.

The purchase was made at $258.50 per ton, cost and freight (C&F) included, consistent with earlier estimates. Traders expect much of the wheat to be sourced from the Black Sea region, including Romania, Bulgaria, and Ukraine. Argentina was also mentioned as a possible origin, though November–December shipments may be too early for its new crop.

The wheat is scheduled for shipment in two periods: December 1–15 and December 16–31 from major European supply regions. If sourced from South America or Australia, shipments would occur one month earlier. Traders note that updated estimates of volumes and prices may be released later.

French wheat, which has historically been a major supplier to Algeria, was effectively excluded from the tender, although no official announcement was made. Traders attribute this to diplomatic tensions following France’s recognition of Morocco’s sovereignty over Western Sahara. OAIC maintains that it treats all suppliers fairly, yet French companies have been tacitly sidelined in recent tenders.

Currently, French, Romanian, Ukrainian, and Russian wheat are priced at roughly $226–229 per ton FOB for December shipments, creating a competitive environment in which Black Sea suppliers continue to maintain their advantage in the Algerian market.

Tags: tender, wheat, Algeria