Algeria’s state grains agency, OAIC, is reported to have acquired approximately 1.17 million metric tons of milling wheat through an international tender that closed on Tuesday, according to European traders on Thursday.
Key Details:
Purchase Overview:
Traders had initially reported the acquisition on Tuesday but did not provide specific estimates of the tonnage until now.
The reported prices for this purchase are around $257 to $258 per ton, including cost and freight (c&f).
Previous Tender Context:
In its last significant milling wheat tender in late October, OAIC was estimated to have purchased about 600,000 tons for December shipment at a higher price of $263 per ton c&f.
Sourcing Expectations:
Traders speculate that some of the wheat bought in this recent tender will be sourced from the Black Sea region, including countries like Romania, Bulgaria, and Ukraine.
There is also anticipation of some Russian wheat being included in the shipment.
Supplier Landscape:
Reports indicate that around eight companies participated in the sales, with at least one French trading house involved.
Historically, Algeria has primarily sourced its wheat imports from France; however, Russian and other Black Sea exporters have been increasing their market share, particularly following diplomatic tensions between Algeria and France since early October.
Shipping Schedule:
The wheat is sought for shipment across four periods:
February 1-15
February 16-28
March 1-15
March 16-31
If sourced from South America or Australia, shipments are expected to occur one month earlier.