- Volume: Algeria’s OAIC purchased about 200,000 tons of milling wheat in its May 20 tender.
- Pricing: Purchase prices ranged between $284 and $292 per ton on a C&F basis, with origin left flexible.
- Logistics: Discharge is limited to Mostaganem and/or Tenes, with delivery set for July–September 2024.
- Shipment Timing: Wheat from South America or Australia must be shipped one month earlier to meet the arrival window.
- Market Impact: Neutral to slightly bearish for Black Sea wheat as competition from European and South American origins remains strong.
Algeria Wheat Tender Overview
Algeria’s state grain agency, OAIC, concluded an international milling wheat tender on May 20, securing approximately 200,000 tons of wheat of flexible origin. The purchase was finalized at prices between $284 and $292 per ton on a C&F basis, reflecting competitive offers from multiple exporting regions.
The tender restricts discharge to the ports of Mostaganem and/or Tenes, a constraint that typically aligns with smaller volumes by OAIC standards. The contracted wheat is scheduled to arrive between July and September 2024, shaping import flows into Algeria over the third quarter.
Pricing and Delivery Structure
| Item | Detail |
|---|---|
| Purchase Volume | ≈ 200,000 tons |
| Price Range (C&F) | $284–$292 per metric ton |
| Tender Date | May 20, 2024 |
| Delivery Window | July–September 2024 (arrival) |
| Discharge Ports | Mostaganem and/or Tenes |
| Origin | Flexible (any origin, including Black Sea, EU, South America, Australia) |
| Shipment Timing for South America/Australia | Must ship one month earlier than standard schedule |
Delivery terms require arrival during July–September 2024, with a specific clause that wheat sourced from South America or Australia must be shipped one month earlier to account for longer transit times. This structure maintains schedule reliability while keeping origin options open for OAIC.
Market Impact and Origin Competition
The tender size represents moderate demand from a regular North African importer and is not large enough to materially shift global price direction in the near term. However, it confirms ongoing North African import requirements into Q3 2024.
With origin left flexible, the business is open to Black Sea, European, South American, and Australian suppliers. The $284–$292 C&F price range signals that Algeria prioritized competitive pricing rather than paying premiums, forcing Black Sea exporters in particular to remain aggressive on offers to secure volumes against European and South American rivals.
Overall, the deal is viewed as neutral to slightly bearish for Black Sea wheat, as it underscores strong competition from alternative origins at similar price levels while adding only modest incremental demand to the global balance sheet.
Source: Market Data
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