Algerian Wheat Buyers Anticipate 600000-Tonne Auction on Wednesday
Algeria’s state grain agency, the Office Algérien Interprofessionnel des Céréales (OAIC), is poised to conduct a significant wheat auction. They are expected to purchase around 600,000 tonnes of milling wheat this Wednesday.
Details of the Upcoming Auction
- Expected Volume: Approximately 600,000 tonnes
- Auction Date: Wednesday
- Price per Tonne: $258.50, including freight
Estimates by traders indicate that the auction could see variations in the total purchased volume. While initial predictions ranged between 500,000 to 600,000 tonnes, many traders are now settling on the higher figure of 600,000 tonnes.
Potential Origins of Wheat
The grain can originate from various regions, with the Black Sea area being a likely source. Traders expect wheat shipments may come from:
- Romania
- Bulgaria
- Ukraine
- Argentina (though the timing of their new crop may be an issue)
The shipping periods are critical; wheat from Europe is scheduled for two phases: December 1-15 and December 16-31. Conversely, if sourced from South America or Australia, the shipping timeline would begin one month earlier.
Market Implications
These auction results could influence future price estimates and volumes on the international market. The assessments by traders continue to shape expectations around Algeria’s procurement strategies in the milling wheat sector.
Market analysts and stakeholders are closely monitoring the situation as the auction date approaches, reflecting on Algeria’s position as a key player in global grain purchases.
