Algeria secures over 1 MT of milling wheat in international tender

ALGERIA – Algeria’s state grains agency, the Office Algérien Interprofessionnel des Céréales (OAIC), has significantly boosted its wheat imports with the purchase of around 1.05 to 1.08 million metric tons of milling wheat in its latest international tender, which closed July 16, according to European trading sources.

The volume represents one of Algeria’s largest recent purchases and underscores the country’s growing demand for milling wheat as it seeks to maintain domestic flour supplies amid geopolitical disruptions and shifting global trade flows.

Trade estimates indicate the wheat was bought at cost and freight (c&f) prices ranging between US$253 and US$257 per metric ton, with most of the volume secured at the higher end of that range, US$257 per ton.

The wheat is of optional origin, though early assessments suggest supplies are likely to come from the Black Sea region, including Russia, Ukraine, and Bulgaria, and possibly from the Baltic states.

The tender calls for delivery in three periods: September 16–30, October 1–15, and October 16–31. OAIC reportedly did not seek shipments for the first half of September. For cargoes sourced from more distant origins such as South America or Australia, shipments are expected to begin one month earlier.

This latest procurement marks a sharp rise compared to OAIC’s previous reported tender on June 17, where approximately 550,000 to 570,000 metric tons of milling wheat were bought at prices averaging US$244.50 to US$245 per ton c&f.

The increase in both volume and price highlights Algeria’s strategic stockpiling amid tight global supplies and ongoing logistical risks in the Black Sea region.

Algeria, Africa’s second-largest wheat importer after Egypt, is expected to import between 7 and 8 million metric tons of wheat in the 2024/25 marketing year, according to USDA’s June 2024 report. The country’s domestic wheat production remains vulnerable to drought, particularly in the high plains region, where erratic rainfall continues to limit yield potential.

In June 2024, Algeria’s Ministry of Agriculture reported a projected cereal harvest of only 3.2 million tons, down nearly 40% from last year’s 5.1 million tons, due to drought and high temperatures during key grain-filling stages. This shortfall is likely driving the country’s increased import activity, particularly of high-quality milling wheat.

France has historically dominated Algeria’s wheat import market due to logistical proximity and long-standing trade relations. However, the past two years have seen a growing share of Black Sea exporters, particularly Russia, enter the Algerian market after Algiers relaxed quality specifications in 2020 to allow more competition.

According to data from Refinitiv and the European Commission, Russia shipped over 2.6 million metric tons of wheat to Algeria in the 2023/24 marketing year, up from negligible volumes just three years prior. Meanwhile, France’s wheat shipments to Algeria declined slightly over the same period, despite a strong harvest in 2023.

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