Algeria buys 690,000T of wheat in international tender
The purchase exceeds the usual tender size, signaling strong demand for milling wheat.
ALGERIA – Algeria’s state grain agency OAIC has purchased around 690,000 tons of milling wheat in an international tender that closed on March 26.
The volume far exceeds the typical minimum tender size of 50,000 tons, according to market sources.
“This tender shows Algeria is actively securing its wheat supply for the upcoming months,” said a trader familiar with the deal.
The wheat was bought at an estimated price of $272 per ton on a cost and freight basis, which covers both the commodity and shipping expenses. This puts the total value of the purchase at approximately $187.7 million. Traders say most of the wheat is likely to come from the Black Sea region, including Ukraine, Romania, and Bulgaria.
Under the tender terms, shipments are set to take place in two periods: June 1 to June 15 and June 16 to June 30. If some of the wheat comes from South America or Australia, the shipments are expected about one month earlier. Final volumes and origins may still change as negotiations continue.
Algeria remains one of the largest wheat importers globally. Historically, it relied heavily on European suppliers, particularly France. However, shipments from the Black Sea region have increased in recent years. “Suppliers from Ukraine and Romania have become more competitive, and Algeria is taking advantage of that,” said another market analyst.
Recent developments in Algeria’s wheat supply highlight a shift in sourcing strategy. Diplomatic tensions between France and Algeria have contributed to a decline in French wheat exports, creating more room for Black Sea exporters. Meanwhile, local authorities continue to monitor market conditions closely to ensure food security.
The purchase also comes amid global grain market volatility, including ongoing disruptions in shipping and production in key exporting countries. “Algeria is planning ahead to reduce the risk of shortages, especially given current international market uncertainties,” said an industry observer.
This tender demonstrates Algeria’s determination to maintain stable wheat stocks while diversifying its import sources, a move that analysts say could influence future trade patterns in North Africa and beyond.
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