Algeria Buys Around 600 Thsd Tons of Wheat in International Tender
2025-10-24 10:54
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Wedoany.com Report-Oct. 24, Algeria’s state grains agency, OAIC, has secured around 600,000 tons of wheat in an international tender that closed on Wednesday, October 22, marking the upper end of earlier estimates of 500,000–600,000 tons. The purchase price was $258.50 per ton, cost and freight (C&F) included, in line with market expectations. Traders indicated that most of the wheat is expected to originate from the Black Sea region, including Romania, Bulgaria, and Ukraine, while Argentina was mentioned as a possible source, though shipments from there in November–December may be too early for its new crop.

The wheat is planned for shipment in two periods: December 1–15 and December 16–31, primarily from major European supply regions. If sourced from South America or Australia, deliveries would be scheduled about one month earlier. Market participants noted that OAIC may release updated volume and price information later.

French wheat, historically a significant supplier to Algeria, was effectively excluded from this tender, although no formal announcement was made. Traders attribute this to diplomatic developments following France’s recognition of Morocco’s sovereignty over Western Sahara. OAIC maintains that it treats all suppliers fairly, but French companies have been informally sidelined in recent tenders.

Current prices for French, Romanian, Ukrainian, and Russian wheat are roughly $226–229 per ton FOB for December shipments, creating a competitive environment in which Black Sea suppliers hold a pricing advantage for the Algerian market.

The tender reflects Algeria’s ongoing efforts to secure stable wheat supplies amid a competitive global market, balancing cost, origin, and delivery schedules. By sourcing mainly from the Black Sea region, OAIC continues to rely on suppliers that offer timely shipments and favorable pricing, while maintaining flexibility to consider other origins if necessary.

Traders emphasize that the C&F price of $258.50 per ton aligns with recent market expectations, ensuring predictable procurement costs for OAIC. The shipment schedules allow for phased deliveries in December, helping Algeria manage storage and distribution efficiently across the country.

Overall, the tender underscores the importance of the Black Sea region in Algeria’s wheat procurement strategy. While French suppliers remain largely absent from the process, other European and global exporters continue to compete actively, ensuring Algeria can access quality wheat at competitive prices to meet domestic demand. The combination of secure supply, favorable pricing, and scheduled shipments reinforces OAIC’s role in stabilizing Algeria’s wheat market.

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