Algeria bought about 600 thsd tons of wheat at a tender, $6/ton more expensive than in January
Algeria’s OAIC purchased about 600,000 tons of milling wheat at $259–260/t C&F, higher than recent tenders. Supplies will come mainly from Black Sea and European origins, excluding France. Prices align with current Ukraine export levels, limiting near-term upside in regional wheat markets.
On February 24, the Algerian state-owned company OAIC held a tender to purchase at least 50,000 tons of milling wheat of any origin, in which it purchased about 600,000 tons at a price of $259-260/ton C&F, although the sellers’ offer prices initially exceeded $260/ton, European traders report.
According to the terms of the tender, wheat of European or Black Sea origin (in particular, from Ukraine, Romania and Bulgaria) must be shipped in three periods: April 16-30, May 1-15 and May 16-31, 2026, while wheat from South America or Australia must be delivered a month earlier.
According to traders, wheat of French origin has again been excluded from the tender.
It should be noted that the purchase price was $6/t higher than in the January tender and $3-4/t higher than in the December tender.
Recall that in the previous tender on January 19, Algeria purchased about 720 thousand tons of milling wheat at a price of $253-254/ton C&F.
The price level of $259-260/t C&F corresponds to the price in Ukraine within the range of $215-218/t with delivery to Black Sea ports, which is currently offered by traders, so it is not worth expecting an increase in wheat prices in Ukraine.
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