Algeria secures 600,000T of milling wheat in international tender

Algeria’s state grains agency, OAIC, is believed to have purchased approximately 600,000 metric tons of milling wheat in an international tender that closed on October 22, according to European traders.

This volume aligns with the higher end of initial trader estimates, which ranged between 500,000 and 600,000 tons on Wednesday, October 22, evening. By Thursday, October 23, most traders converged on an estimate of 600,000 tons, though some individual assessments cited 580,000 tons.

The entire purchase was reportedly secured at a price of US$258.50 per ton, cost and freight (c&f) included, consistent with estimates provided on Wednesday.

Traders suspect that the majority of the wheat will be sourced from the Black Sea region, with likely origins including Romania, Bulgaria, and Ukraine.

While the tender allows for optional origins, Argentine wheat, noted for its competitive pricing, was mentioned as a potential source. However, traders noted that November/December shipment timelines may be too early for Argentina’s new crop.

The wheat is scheduled for shipment in two periods from primary supply regions, including Europe: December 1–15 and December 16–31.

For supplies from South America or Australia, shipments are expected one month earlier, between November 1–15 and November 16–30. Further estimates of prices and volumes may emerge as additional trader assessments are reported.

Notably, French wheat, historically a significant supplier to Algeria, appears to have been excluded from this tender, despite no official confirmation from OAIC.

Traders attribute this to ongoing diplomatic tensions between Algeria and France, stemming from France’s recognition of Morocco’s sovereignty over Western Sahara.

In recent months, OAIC has reportedly excluded French wheat and companies from its import tenders, though the agency maintains that it treats all suppliers equitably.

A trader noted that French wheat could have been supplied at the US$258.50 per ton c&f price, as French, Russian, Romanian, and Ukrainian wheat are currently priced similarly for December shipment, ranging from US$226 to US$229 per ton free on board (FOB).

Tags: tender, milling wheat, Algeria