Source: Ukragroconsult (Ukraine)
According to traders, the Algerian grain agency OAIS bought between 360,000 and 390,000 tons of soft wheat in an international tender. As with the Saudi Arabian tender, it is likely that mostly Russian wheat was bought at USD 262.5/ton and above, equivalent to USD 230/ton FOB Novorossiysk.
Offer prices for Russian wheat have risen sharply in recent weeks and have already exceeded the USD 232-235/tonne mark for October/November delivery. This is due to the extensive sales of Russian wheat in international tenders and to Egypt. At the same time, French wheat prices are USD 20/tonne higher than Russian wheat, so importers are stepping up their purchases in Russia.
According to Reuters, French companies were not invited to participate in the regular tender on October 8, which was organized by the Algerian grain agency OAIS, due to the tense relations between Algeria and France. And companies admitted to the tender were advised not to bid for French wheat.
Algeria is one of the largest wheat importers in the world, and France has been the main supplier of wheat to the country for many years. However, tensions have been brewing between the two countries for several months. On 30 July, the Algerian authorities decided to recall their ambassador from France after the latter recognized Morocco’s plan to grant autonomy to Western Sahara as the only basis for a solution to the conflict. Algeria has supported the Saharawi peoples’ right to self-determination and independence for many years.