Algeria purchased about 500 thousand tons of wheat at $30/ton more than in August

According to European traders, in an international tender on September 15, the Algerian state grain procurement agency OAIS purchased about 500,000 tons of milling wheat at a price of $319-321/ton C&F (including cost and freight), which is $30/ton higher than the purchase price of the August tender.

 

The exact volume of the purchase is not reported, but traders estimate it to be within 500-510 thousand tons, Reuters notes. In the future, information on prices and purchase volumes may be clarified.

 

The tender provided for an arbitrary origin of wheat, so traders expected that the grain would be supplied from Romania, Bulgaria, possibly from the countries of Northern Europe, in particular the Baltic countries, and the possibility of wheat supplies from the Russian Federation through the ports of the Baltic Sea was even discussed.

 

From major regions, particularly Europe, grain should be shipped in two stages – from November 1 to 15 and from November 16 to 30, but shipments from South America, India or Australia should be made a month earlier.

 

The tender came at a difficult time for importers, when supplies of cheap Ukrainian and Russian wheat have been halted due to the blockade of Black Sea ports, and French wheat is not allowed to participate in the bidding due to political tensions between Algeria and France.

 

Recall that in the previous tender on August 5, the state grain agency OAIS purchased 720 thousand tons of wheat at a price of $289-290/ton C&F, and in the June tender - 800 thousand tons of wheat at a price of $264-265/ton C&F.