Algeria purchased 360 thsd tonnes of Russian wheat at a tender and did not allow French grain to be traded

According to traders, the Algerian grain agency OAIS purchased 360 to 390 thsd tonnes of soft wheat at the international tender. As in the tender in Saudi Arabia, it was probably purchased mainly Russian wheat at the price of 262.5 USD/t and above, which is equivalent to 230 USD/t FOB Novorossiysk.

In recent weeks, the bid prices of Russian wheat have been actively growing and have already exceeded 232-235 $/t for delivery in October-November. This is due to significant sales of Russian wheat at international tenders and to Egypt. At the same time, prices for French wheat are 20 $/t higher than for Russian wheat, so importers are stepping up purchases in Russia.

According to Reuters, due to the tense relations between Algeria and France, French companies were not invited to participate in the regular tender on October 8, which was held by the Algerian Grain Agency OAIS. And the companies admitted to the tender were advised not to offer French wheat at the auction.

Algeria is one of the world’s largest wheat importers, and France has been the country’s main wheat supplier for many years. But for several months now, there have been tensions between the two countries. On July 30, the Algerian authorities decided to recall their ambassador from France after the latter recognized the Moroccan plan to grant autonomy to Western Sahara as the only basis for resolving the conflict. Algeria has been supporting the right of the Sahrawi peoples to self-determination and independence for many years.

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Tags: Russia, tender, France, wheat