- Volume Secured: Algeria’s OAIC purchased about 690,000 tons of milling wheat via an international tender concluded on March 26.
- Price Level: The deal was agreed at around $272 per ton C&F, reflecting competitive export pricing.
- Origin Mix: Most of the wheat is expected to come from Black Sea suppliers, notably Ukraine, Romania, and Bulgaria.
- Shipping Window: European and Black Sea origins are scheduled for delivery between June 1 and June 30, with South American/Australian wheat needing to arrive one month earlier.
- Market Impact: The tender underscores Black Sea wheat’s strong position in North Africa and supports freight demand into early summer.
Market Update
The Algerian state grain agency, OAIC, has finalized a sizable international tender, securing approximately 690,000 tons of milling wheat at an indicated price near $272 per ton C&F. According to market operators, the majority of this volume is expected to be sourced from Black Sea origins, particularly Ukraine, Romania, and Bulgaria, reflecting their strong price competitiveness and logistical advantages into North Africa.
The tender permitted wheat of any origin, but delivery terms differed by region. For European and Black Sea suppliers, shipment must arrive between June 1 and June 30. In contrast, South American or Australian wheat would have to meet an earlier delivery schedule, with arrival one month ahead of the Black Sea and European window, making those origins less flexible in timing.
Price and Volume Summary
| Buyer | Commodity | Volume (tons) | Price (C&F) | Delivery Window (Europe/Black Sea) |
|---|---|---|---|---|
| OAIC (Algeria) | Milling Wheat | ≈ 690,000 | $272/ton | June 1–30 |
Market Analysis
This tender reinforces the Black Sea region’s competitive edge in supplying North African wheat demand. The achieved price level around $272 per ton C&F suggests that Black Sea exporters, particularly in Ukraine, Romania, and Bulgaria, remain highly cost-effective compared with more distant origins. The structured delivery window into June coincides with the latter stage of the current marketing year, providing continuity of export flows before new-crop supplies emerge.
Logistically, the June 1–30 arrival period should underpin vessel demand on established Mediterranean and North African routes, supporting freight utilization during a seasonally active period. For Black Sea exporters, the result can be interpreted as neutral-to-bullish, sustaining both volume and price momentum as they compete aggressively for Mediterranean basin market share.
Source: Market Data
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