- Volume Surge: Algeria’s OAIC quadrupled its initial feed barley tender, purchasing 200,000 tons versus the planned 50,000 tons.
- Price Benchmark: The deal was concluded at approximately $260/MT C&F, setting a key reference level for upcoming barley tenders.
- Origin Dynamics: Partial sourcing from Western Europe underscores competitive pressure on traditional Black Sea exporters.
- Timing Impact: Delivery in the first half of March 2025 supports nearby demand but may cap upside for Black Sea barley values.
Algeria Quadruples Barley Tender Volume
Algeria’s state grain agency OAIC significantly expanded its latest feed barley tender, ultimately purchasing around 200,000 tons compared with the initial 50,000-ton target. The tender was concluded at approximately $260 per ton C&F, highlighting strong import demand from the North African buyer.
Market participants indicated that a portion of the volume will be supplied from Western European origins, reflecting the region’s competitive position in nearby shipments. The tender terms allowed unrestricted origin, with execution focused on the most cost-effective and logistically efficient suppliers.
Shipment Window and Logistics
According to tender conditions, delivery into Algeria is scheduled for the first half of March 2025. This shipment window concentrates demand into a relatively tight period, supporting freight and nearby physical premiums for vessels able to meet the schedule.
| Parameter | Detail |
|---|---|
| Tendered Volume (Initial) | 50,000 tons |
| Purchased Volume (Final) | 200,000 tons |
| Commodity | Feed Barley |
| Price | $260/MT C&F |
| Key Origins | Partial Western Europe (no origin restrictions) |
| Delivery Window | First half of March 2025 |
Market Impact and Price Signals
The $260/MT C&F price level is expected to serve as a reference point for upcoming barley negotiations, particularly for Black Sea exporters in Russia and Ukraine. While the sizeable volume underscores resilient global feed barley demand, the choice of Western European supplies for part of the contract signals intensifying competition for North African business.
For Black Sea origins, the outcome is neutral to slightly bearish: demand is present, but pricing must remain competitive against EU suppliers, especially for nearby shipment windows. The March 2025 delivery period concentrates demand in the short term yet may exert pressure on Black Sea sellers to align offers with the newly established benchmark.
Source: Market Data
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