Algeria purchased 690 thousand tons of wheat at $19/ton cheaper than two weeks ago

The Algerian state agency OAIS held its second wheat procurement tender this week, purchasing 690,000 tons of milling wheat of any origin at an average price of $272/ton C&F, which is $19/ton lower than in the tender two weeks ago, but $11/ton higher than in the auctions at the end of February (before the war with Iran), Reuters reports.

Applications for participation in the tender were accepted until March 26, and the bid prices were significantly lower than in previous auctions.

Traders believe that most of the purchased wheat will be of Black Sea origin. According to the terms of the tender, shipment will take place between June 1-15 and June 16-30, but grain from Australia or South America should be shipped a month earlier.

Recall that at the tender on March 11, the Algerian state agency OAIS purchased 200 thousand tons of milling wheat of Black Sea origin at a price of $291/ton C&F, and on February 24 - about 600 thousand tons of milling wheat of European or Black Sea origin with delivery in April-May at a price of $259-260/ton C&F.

The decline in wheat prices is due to a fairly high supply on the world market and traders' hopes for a quick end to the war in Iran.