Algeria Secures Milling Wheat in Latest Tender Deal Say Traders
Algeria’s state grain agency, OAIC, has successfully secured a significant quantity of milling wheat in its latest tender. This auction concluded on Wednesday, capturing the attention of European traders. The reported cost for this wheat was approximately $258.50 per metric tonne, including freight.
Details of the Wheat Purchase
The estimated total volume of this order is between 500,000 and 600,000 tonnes. Traditionally, Algeria tends to acquire more than the initial amount stated in its tenders. The wheat being purchased is of optional origin; however, it is anticipated that the majority will come from the Black Sea region or Argentina.
Shipping and Sourcing Insights
- Wheat shipments will be transported in two phases:
- December 1-15
- December 16-31
- For wheat sourced from South America or Australia, the shipment period is shifted one month earlier.
Traders suggest that the current geopolitical dynamics play a role in Algeria’s purchasing decisions. The country has become an important market for wheat imports from the European Union, especially France. However, recent tensions have led Algeria to subtly overlook French wheat and trading firms in favor of other suppliers.
Market Trends and Relationships
The growing engagement of Russian exporters and other suppliers from the Black Sea area highlights this shift. The diplomatic rift between Algeria and France continues to influence trade relationships, impacting the volume and sourcing of wheat. As the situation develops, further price estimation and volume analysis may arise from traders.
As Algeria continues to expand its wheat procurement strategies, the implications for international suppliers and local markets remain significant. The recent purchase reflects both the complexity of global agricultural trade and the local dynamics at play.
