Algeria wheat tender purchase estimates raised to 700–720 thsd tons
Algeria’s state grain agency is now estimated to have bought 700,000–720,000 tonnes of soft wheat at its January 19 tender, above initial expectations. Exceptionally low prices near $253–254 per tonne c&f sidelined Black Sea origins, with Argentina expected to dominate supplies for March shipment.
Estimates of wheat purchases at Algeria’s international tender, which closed on Monday, January 19, have been revised upward. According to updated information from traders, Algeria’s state grain agency likely bought between 700,000 and 720,000 tons of soft wheat, compared with initial market estimates of around 600,000 tons.
The tender attracted significant market attention due to exceptionally low prices. Initial assessments put purchases at about $254 per metric ton on a c&f basis, while market rumors suggested a lowest price of around $253 per ton. Traders said these price levels effectively pushed Black Sea wheat out of the competition.
Algeria’s tenders are not restricted by origin, but market participants expect Argentina to be the main supplier. The country is currently offering very competitive prices amid a large harvest, allowing it to outbid other exporters on the global market.
The wheat was intended for shipment in March. Deliveries are scheduled in two periods — from March 1 to 15 and from March 16 to 31 from the main supplying regions, including Europe, while in the case of shipments from South America, loading dates may be shifted.
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Source : Ukr Agro Consult
