Algeria’s state grains agency, OAIC, has made a significant move to secure its wheat supply by purchasing at least 480,000 metric tons of milling wheat in an international tender on Thursday.
This substantial purchase comes amidst global concerns over wheat supply, particularly in the wake of Russia’s invasion of Ukraine, a major wheat exporter.
Initial estimates suggest that Algeria paid around $263 per ton, with the majority of the wheat expected to be sourced from the Black Sea region, including Bulgaria, Romania, and the Baltic states.
The wheat is slated for shipment in two periods: December 1-15 and December 16-31.
This latest purchase follows a similar one on October 8, where Algeria procured between 510,000 and 570,000 tons of wheat.
However, a notable change in this recent tender is the inclusion of French companies, albeit with the condition that they cannot offer French-origin wheat.
This move is likely a response to the ongoing diplomatic tensions between Algeria and France.
The Algerian government’s proactive approach to securing wheat supplies underscores the country’s commitment to food security.
As global wheat markets remain volatile, Algeria’s large-scale purchases could have implications for international wheat prices and availability.