Algerian OAIC Purchases Wheat

Algeria’s state grains agency OAIC is believed to have bought between 450,000 to 500,000 tons of milling wheat in an international tender which closed on Wednesday, European traders said on Thursday. This was above estimates of about 400,000 tons on Wednesday evening.

Price estimates on Thursday were again between US$354 to US$355.50 a ton cost and freight (c&f) included, the same as reported on Wednesday night although US$355 a ton c&f was more frequently spoken of on Thursday. Technically supplies are optional origin, but traders said they expected a range of source countries including France, Germany and the Black Sea region including Bulgaria and Russia.

More detailed assessments prices and tonnage bought are still possible later. The wheat was sought for shipment in two periods in 2023 from the main supply regions including Europe: Jan. 1-15 and Jan. 16-31. If sourced from South America or Australia, shipment is one month earlier. Algeria is a vital customer for wheat from the European Union, especially France.