Algeria’s OAIC purchases up to 150,000 tons of milling wheat in tender

ALGERIA – Algeria’s state grains agency, the OAIC, has reportedly secured between 140,000 and 150,000 metric tons of milling wheat in an international tender closed on November 26. 

According to European traders, the tender specified unloading only at the ports of Mostaganem and Tenes,  a smaller than usual purchase.

Traders initially reported the procurement on November 26, though they were unable to confirm volumes at the time. By November 27, estimates of the purchase price stabilized around US$267 per ton, including cost and freight (C&F).

The tender called for a nominal 50,000 tons but allowed for adjustments during the process. The focus on two specific ports, Mostaganem and Tenes, reinforced expectations for a more limited deal, consistent with OAIC’s strategy for smaller, targeted purchases.

Although the wheat was tendered as optional origin, it is widely believed to have been sourced from the Black Sea region, a rising supplier to Algeria. Russian wheat, in particular, has been making inroads, reflecting a shift in Algeria’s procurement patterns.

The wheat is scheduled for delivery during six supply windows in 2025, starting from January 1 to March 31, if sourced from Europe or the Black Sea region. For shipments originating from South America or Australia, deliveries will occur one month earlier.

Algeria is among the world’s largest wheat buyers and has traditionally relied on France as its primary wheat supplier.

However, in October, Algeria barred French companies from participating in a recent wheat import tender, specifying that firms submitting bids must not offer wheat of French origin, according to trading sources.

This decision appears to be a direct result of escalating diplomatic tensions between Algiers and Paris, reminiscent of a similar situation three years ago when France was excluded from Algeria’s wheat tenders for several months.

This exclusion highlights Algeria’s wheat sourcing shift, with Black Sea suppliers gaining ground against traditional European Union exporters.

While OAIC did not issue a formal statement explaining the exclusion, sources close to the matter indicated that it was linked to the souring diplomatic ties between the two nations.

In the latest tender conducted by Algeria’s state grain agency, OAIC specifically excluded French firms and prohibited other companies from offering French-origin wheat. Traders estimate that over 500,000 metric tons of wheat were purchased during this tender.

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