Algeria Durum Wheat Tender: 400kT at $327-332/ton

• Algeria books 400,000 tons of durum wheat in its latest international tender, with shipment scheduled between May 16 and June 30, 2024.
• Price spread of $5/ton between Panamax and Handymax vessels, setting a key C&F benchmark at $327-332/ton.
• Canadian origin dominates the award, signaling stronger competitive pressure on Black Sea durum exporters.
• Neutral to bearish for Black Sea wheat as Algeria’s demand tilts toward North American supplies in the Mediterranean market.

Tender Overview

Algeria’s state grain agency OAIC has finalized an international tender, purchasing around 400,000 tons of durum wheat of any origin. Most of the awarded volume is reported to be of Canadian origin, reflecting current competitiveness in quality and pricing versus other supplying regions.

The shipments are scheduled for delivery between May 16 and June 30, 2024, ensuring coverage of Algeria’s near-term milling and food security needs. The tender outcome provides an important reference point for global durum markets, particularly in the Mediterranean basin.

Pricing and Shipment Details

Market Impact and Regional Dynamics

The awarded price range of $327-332/ton C&F establishes a fresh benchmark for regional durum wheat values into North Africa. The clear preference for Canadian origin in this tender underscores the current competitiveness of Western Hemisphere suppliers on both quality and delivered cost.

For Black Sea exporters, the result is neutral to slightly bearish. Algeria’s decision to bypass Black Sea durum in this round puts additional pressure on sellers in the region, who must either concede on price or differentiate on logistics and quality in upcoming tenders. Market participants will be watching closely to see whether this shift toward North American origin persists or proves temporary, driven by specific quality and availability considerations in this shipment window.

Source: Market Data