Algeria's OAIC buys 630k of mostly Russian wheat at $261.50/mt CFR

20 Jun 2023 | Masha Belikova

Algeria’s state grain importer booked up to 630,000 mt of milling wheat for August in a tender closed on Monday, with the bulk of the amount expected to be sourced from Russia, trade sources said.

The Office Algerien Interprofessional des Cereales (OAIC) has booked optional origin milling wheat for shipment during August, paying 261.50/mt CFR on average.

Trade sources expect that most of that will be supplied from Russia, as the price paid currently works only for this origin, given that FOB levels for French, German, and Baltic wheat are the same or even higher.

EU-origin 12% wheat offers were only slightly below $260/mt FOB, compared with Russian 12.5% offered at $230/mt FOB Novorossiysk, Taman or Tuapse (NTT).

But as the origin is optional, it is possible for the traders who sold to decide what fits better at the time of execution.

According to market sources, Solaris sold 180,000 mt, Aston 120,000 mt, Casillo 90,000 mt, and Viterra, Sierentz, Al Ghurair and GTCS 60,000 mt each.

In its last tender closed on May 11, OAIC booked at least 660,000 mt of milling wheat for July 1-31 shipment paying around $275-276.50/mt CFR, with most of the amount expected to be shipped from the European Black Sea region.

The US Department of Agriculture (USDA) estimates Algeria’s wheat imports in 2023/24 at 8.7 million mt, slightly up from those in 2022/23.

This current purchase moved the total amount booked for 2023/24 to 1.2 million mt.

For more information on Algerian buying, please see our Tender Dashboard.