November 10, 2022

Algeria's state grains agency buys 510,000 tonnes of wheat

European traders said OAIC, Algeria's state grains agency, has purchased about 510,000 tonnes of wheat in an international tender, Hellenic Shipping News reported.

This was higher than the majority of the traders' estimates of about 400,000 tonnes.

The majority of the purchase, according to traders, was made at a cost and freight (c&f) price of about US$368 per tonne. This was above the average estimate of US$367 to US$368 per tonne that was made previously. There is still room for more purchase volume and price estimations.

Despite the fact that supplies are technically of optional origin, the traders predicted that a sizable portion would come from Russia, with some likely coming from France.

From the primary supply regions, including Europe, wheat was requested for shipment twice from December 1 to 15 and from December 16 to 31. Shipping occurs one month earlier if the product is from South America or Australia.

Although Russia's exporters have been making significant efforts to increase their presence in the lucrative Algerian market, Algeria is an essential market for wheat from the European Union, particularly France. Results of Algeria's tenders are not made public, and media reports are based on trade estimates.

-      Hellenic Shipping News