Algeria’s state grains agency, OAIC, has successfully purchased approximately 600,000 to 700,000 metric tons of milling wheat in an international tender that closed on Thursday. European traders reported the purchases were made at prices ranging from $250.50 to $252 per ton, including cost and freight (c&f). Initial trader estimates had suggested prices could reach up to $253 per ton, but these were deemed too high.
While there was speculation about a significant purchase, the exact volume remained uncertain until late evening assessments confirmed the range of 600,000 to 700,000 metric tons. Algeria’s tenders allow for optional origins, but low prices indicate that Russian wheat is likely to be a primary source, alongside other Black Sea origins.
Algeria does not publicly announce the results of its purchase tenders, so further estimates regarding prices and volumes may emerge later. The wheat purchased is intended for shipment in 2024, with two specified periods for delivery: October 1-15 and October 16-31. If sourced from South America or Australia, shipment would occur a month earlier.
Algeria is an important market for wheat from the European Union, particularly France, though Russian and other Black Sea exporters have been increasing their presence in the Algerian market. In the previous tender on July 18, Algeria bought about 700,000 to 750,000 tons at prices between $241 and $244 per ton.