- Sizeable procurement: Algeria’s OAIC booked 500,000–550,000 tons of durum wheat in its December 23 tender for February–March 2026 delivery.
- Price benchmarks set: Panamax cargoes priced at about $315/ton C&F, with Handymax shipments at a premium of $323–$325/ton C&F.
- Forward coverage: 13–14 month delivery window signals early strategic stockpiling and concern over future availability or volatility.
- Open-origin competition: Flexible origin terms invite competition among Black Sea, Mediterranean, and North American suppliers.
- Market tone: Neutral to slightly bearish for Black Sea wheat given long lead time and limited spillover to common wheat markets.
Algeria Durum Wheat Tender Overview
Algeria’s state grain agency OAIC has secured between 500,000 and 550,000 tons of durum wheat of unrestricted origin in an international tender held on December 23. The purchase covers deliveries to Algerian ports scheduled for the February–March 2026 shipment window, providing the country with forward supply coverage well into next season.
Price and Shipment Structure
| Vessel Type | Volume (Approx.) | Price (C&F) | Delivery Window | Origin |
|---|---|---|---|---|
| Panamax | Part of 500,000–550,000 tons | $315/ton | Feb–Mar 2026 | Any origin |
| Handymax | Part of 500,000–550,000 tons | $323–$325/ton | Feb–Mar 2026 | Any origin |
Market participants report that Panamax-sized cargoes were concluded at around $315 per ton C&F, while Handymax shipments achieved a premium in the $323–$325 per ton C&F range. These levels set a reference point for forward durum wheat trade, particularly for Mediterranean destinations.
Market Impact and Analysis
The tender’s open-origin terms ensure broad participation from Black Sea, Mediterranean, and North American exporters, fostering competitive pricing and maintaining pressure on supply regions. Although the tonnage is sizeable, the 13–14 month forward delivery horizon dilutes any immediate tightening effect on physical markets.
For Black Sea wheat, the move is viewed as neutral to slightly bearish: it adds visibility to future demand but does not directly support nearby prices, and the specialized nature of durum wheat limits direct translation to common wheat values. Nonetheless, the early strategic coverage by Algeria may reflect concerns about future availability, logistics, or potential price volatility into 2026.
Source: Market Data
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