Algeria takes advantage of low wheat prices

Published 2024년 11월 6일

Tridge summary

Algeria has booked 600,000 tonnes of wheat for December shipment at around US$263/t, including cost and freight, in an optional-origin international tender, with successful participants planning to cover most of their sale commitments via Black Sea ports. Russian exporters have been actively expanding their grain presence in the Algerian market, while France, a traditional supplier, was excluded from the recent tender due to diplomatic tensions. Algeria is one of the world's biggest wheat buyers, with the European Union, Russia, Canada, Mexico, and Ukraine being significant suppliers. The country's wheat production varies greatly, and it relies heavily on imports to meet its demand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The big wheat news and market influence last week revolved around the Algerian milling wheat tender, with the lead-up to the result loaded with a multitude of questions and theories around price, volume and who would be successful. Will Russian exporters observe the floor price, or could they toe the line on the floor price but discount freight to be competitive? How will French exporters respond after reportedly being excluded for the second successive tender? Who will fill the sizeable demand void if neither origin is in the race? In the end, Algeria’s state grains agency, Office Algérien Interprofessionnel des Céréales (OAIC), is reported to have booked as much as 600,000 tonnes of wheat in the optional-origin international tender for shipment in two periods: December 1-15 and December 16-31. This was at the top end of expectations, which ranged upward from 480,000t, and sees OAIC well ahead of its historical average purchasing pace for first four months of the marketing year. ...

Source: UkrAgroConsult