Algeria’s OAIC buys 660,000 mt of wheat at tender

Algeria’s state grains procurement agency OAIC bought 660,000 mt of wheat at tender, market sources said Wednesday. Closing prices were quoted between $210-$212.50/mt, with an average price of $211.25/mt CIF Algeria.

A mixture of French and Argentine origin wheat, the purchase saw 60,000 mt brought from Olam at $210/mt CIF, 120,000 mt from Casillo at $211/mt CIF, 120,000 mt from Cofco at $211.50/mt CIF, 90,000 mt from Bunge at $212/mt CIF, 60,000 mt from BayWa at $212/mt CIF, 90,000 mt from Lecureur at $212/mt CIF, and 120,000 mt from Cargill at $212.50/mt CIF.

The purchase follows a September 29 deal for 480,000 mt of December-shipment wheat at an average price of $211.50/mt CIF Algeria. The modest price decline is notable, with the December shipment largely in line with for January despite the MATIF spot price dropping from $196.20/mt to $191.20/mt between the two tenders. Agricensus, meanwhile, assessed Argentinian 12% milling wheat at $181/mt FOB Up River, with freight expected to be around $15/mt.

Algeria is one of the biggest importers of wheat, importing around 80% of its total wheat consumption of 10-11m mt.

The OAIC could not be reached for comment.