Importers have stepped up wheat purchases, and prices have increased slightly compared to previous tenders

On September 23, the Algerian state-owned company OAIC held a tender to purchase at least 50,000 tons of soft wheat of any origin, at which it purchased about 600,000 tons (and according to some estimates, even 700-720,000 tons) of wheat at a price of $259-261/ton C&F, which is slightly higher than the purchase price of the previous July tender, which was $253-257/ton.

According to the terms of the tender, wheat from Europe or the Black Sea region must be shipped on November 1-15 and 16-30, and from South America or Australia – a month earlier.

Traders believe that the bulk of the purchased wheat will be supplied from Ukraine, Romania and Bulgaria, and several batches even from the Baltic countries.

On September 23, the Ministry of Industry and Trade of Jordan held a tender for the purchase of 120 thousand tons of milling wheat of any origin, at which it purchased 60 thousand tons of milling wheat from Al Dahra with shipment from November 1-15 at a price of $266/ton C&F. At the same time, Cargill offered wheat at $269.9/ton, and Bunge at $277/ton.

The next tender for the purchase of 120 thousand tons of milling wheat of any origin with shipment in December will be held on September 30.

This price level will ensure that export prices for food wheat demand in Ukraine will remain at $220-225/t delivered to ports, and export demand will grow in the coming weeks.

Tags: tender, wheat