European traders confirmed that the Algerian Professional Grain Office has purchased approximately 800,000 tons of soft milling wheat in an international tender that closed last Tuesday. Traders noted that the purchase price ranged between $279 and $279.50 per ton, including shipping costs, with some reports indicating purchases at $280 per ton during the first half of August.
Although initial estimates suggested the purchase of 600,000 tons, most commercial estimates reported that Algeria secured about 800,000 tons. Last month, Algeria had requested to purchase a nominal quantity of 50,000 tons, but purchases in Algerian tenders often significantly exceed the required nominal volume.
The wheat is scheduled for shipment in 2024 in two periods from the main supply regions, including Europe: from the first of July until mid-July and from July 16 to 31. If the origin is from South America or Australia, the shipment will occur one month earlier.
Algeria is an important buyer of wheat from the European Union, particularly France, but Russian exporters are increasingly expanding their presence in the Algerian market.
