Wheat prices fell after the tender in Algeria

2019-11-22 12:12:21
Machine translation
Wheat prices fell after the tender in Algeria

State-owned Algerian operator OAIC purchased in the tender to 540 thousand tonnes of mostly French wheat with protein 11%, and delivery in January 2020 at a price 223-224 $/t CFR, which is by 5 $/MT lower than at the previous auction on October 23. Suppliers are Cargill, Casillo, Glencore and Lecureur.

 

in General, in 2019/20 Mr OAIC have already purchased 3,3 million tonnes of wheat, 0.8 million tonnes lower than in on this date last year. The Algerian government announced intentions to restrict imports of wheat, 4 mln tonnes compared to the previous quota of 6.2 million tonnes to reduce the cost of currency.

 

the country's Agricultural sector suffers from high-profile scandals related to corruption, which led to the resignation of the President and the Prime Minister. The Chairman of the OAIC in July, was removed from office, while 45 state-owned enterprises were closed due to overestimation of demand to participate in the state program of subsidizing of bread.

 

Despite the official statement made by Algeria on the reduction of imports by 35%, traders do not believe in the reality of its implementation. However, it eliminates the victory of French wheat at tender. Besides, it needs to be delivered in December, when the collection has not yet completed. In December to his post formally occupied by the new President of Argentina, which has not yet decided on the policy in respect of exports of agricultural products.

 

  • Additionally weighed on prices, the weakening of Chicago, resulting in the December futures for milling wheat on MATIF fell by 0.75 €/t to 179,25 €/t or 198,33 $/t

 

After due to the poor condition of crops of a three-day growth Chicago investors decided to lock in the gains, therefore, carried out speculative sales.

 

Quotes did not support even the weekly export sales that were near the top of expectations, which doesn't happen often.

 

the December wheat futures in the U.S. fell:

1,84 $/t to 154,69 $/t for solid winter HRW wheat in Kansas city

to 2.20 $/t to 181,97 $/t on a firm spring HRS wheat in Minneapolis.

  • to 2.39 $/t to 187,02 $/t for SRW soft winter-wheat in Chicago

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