Algeria Makes Large Purchase of Soft Wheat on International Market

The Algerian Interprofessional Cereals Office (OAIC) has concluded a purchase of over 700,000 tonnes of milling wheat at a price of around $313 per tonne, including freight. The shipments are expected to arrive in January 2027. This is the fifth major operation by the OAIC since June and the first to be realized at a lower price since the start of summer.

The OAIC had opened a tender for 50,000 tonnes of soft wheat on November 9, with bids due by November 11. The office announced an indicative volume, then bought based on the offers received. Market analysts estimated the result to be over 700,000 tonnes on the evening of the closure. Some sellers left without contracts despite competitive prices, as the tonnage target was considered achieved.

The price of around $313 per tonne, including cost and freight, interrupts a series of four operations concluded at a higher price. The OAIC had bought over 800,000 tonnes at $264-265 per tonne on June 17, then an estimated 540,000-720,000 tonnes at $289-290 per tonne in early August. The office also purchased 500,000 tonnes at $319-321 per tonne in mid-September and 600,000 tonnes at $326-326.50 per tonne on October 13.

The current purchase is around $13 per tonne lower than the previous month's price, for a volume superior by 100,000 tonnes. This decline follows the easing of European prices, fueled by the reorientation of Russian exports towards the Baltic ports. The origins of the wheat remain at the supplier's choice, with expectations of a significant share of Argentine wheat, complemented by Romanian, Bulgarian, and Baltic wheat.

The new South American harvest is arriving on the market with cheap offers, which is expected to influence the market. Shipments from Europe must take place between January 1-15 and January 16-31, 2027. Shipments from South America, India, or Australia will depart a month earlier due to longer transportation times.

Before this operation, Algeria's soft wheat purchases for the year had reached around 4.6 million tonnes. According to the FAO, the country's cereal production is estimated at 4.9 million tonnes in 2026, up 15.4% from 2025. The production includes 3.5 million tonnes of wheat. Favorable rains have supported the harvests, and the next challenge is to maintain this progress despite climate variations.

For the 2026-2027 campaign, the FAO estimates Algeria's wheat import needs at 8.5 million tonnes, slightly lower than the average due to the national harvest. The country's cereal production in 2026 is estimated at 5 million tonnes, the highest since 2019. Soft wheat is used to produce bread-making flour, a staple in the Algerian diet.

Key points

• Algeria buys over 700,000 tonnes of soft wheat at $313 per tonne.
• Shipments are expected to arrive in January 2027.
• The purchase price is around $13 per tonne lower than the previous month's price.