Algeria Buys Up to 720,000 Tonnes of Wheat in International Tender

The estimated volume exceeds initial assessments issued on Tuesday evening, when traders put Algeria’s purchases at around 600,000 tonnes. Both the quantities and prices reported remain provisional and may be revised as further market information becomes available. According to traders, the tender allowed for wheat of optional origins. Potential shipments are expected to include wheat from the Baltic Sea region, including Russian wheat exported through Russian ports, as well as supplies from Romania, Bulgaria and Argentina. Algeria requested deliveries from major supply regions, including Europe, in two shipment windows: December 1–15 and December 16–31. Wheat sourced from South America, India or Australia is to be shipped one month earlier than these deadlines. The tender comes at a challenging time for importers, as low-cost Russian and Ukrainian wheat exports through the Black Sea have been almost entirely halted by the conflict. Prices, however, have retreated from highs not seen for years that were reached about a month ago. The decline is partly attributed to increased Russian exports through Baltic Sea ports, encouraging some buyers to return to the market. Algeria remains one of the leading importers of wheat from European Union countries. However, its interest in French wheat has declined over the past two years, a trend traders attribute to diplomatic tensions between Algiers and Paris. In its previous tender, announced in mid-September, Algeria’s state grain agency purchased approximately 500,000 tonnes of milling wheat at prices ranging from $319 to $321 per tonne, cost and freight included.