Algeria's OAIC Purchases 600,000 Tonnes of Milling Wheat for $259-$260/Tonne
Image: Algerie Eco
Takeaway
The exclusion of French wheat from Algerian tenders presents a strategic opportunity for grain traders in the Black Sea region, particularly those with access to Ukrainian, Romanian, and Bulgarian supplies. Investors should closely monitor OAIC tender specifications and geopolitical developments to capitalize on shifting trade flows and pricing dynamics in the Algerian wheat market.
Algeria's state grains agency, the Office Algérien Interprofessionnel des Céréales (OAIC), concluded a tender on Tuesday, February 24, 2026, to purchase approximately 600,000 metric tons of milling wheat. Negotiations continued into Wednesday. European traders estimate the purchase price to be between $259 and $260 per ton, cost and freight included (c&f).
This purchase underscores Algeria's continued reliance on wheat imports to meet domestic demand, despite government efforts to boost local production. In August 2024, President Abdelmadjid Tebboune announced his intention to end durum wheat imports by 2026. Minister of Agriculture Youcef Cherfa confirmed on June 14, 2025, that Algeria would cease all durum wheat imports in 2026, citing an "excellent" harvest in 2025 with yields exceeding 55 quintals and reaching up to 80 quintals per hectare. The OAIC was established on July 12, 1962, and is responsible for organizing the cereal market, ensuring supplies, regulating prices, and supporting production.
The tender specifies shipment periods from April 16-30, May 1-15, and May 16-31 for wheat originating from Europe or the Black Sea region. Shipments from South America or Australia are to occur one month earlier. The origin of the purchased wheat is optional, but market indicators suggest that supplies could come from the Black Sea region, including Ukraine, Romania, and Bulgaria. Argentine wheat is not expected to be a major source due to tightening supplies. The US Department of Agriculture (USDA) forecasts Algeria's wheat imports for 2025-26 at 9.2 million tonnes, slightly lower than the 9.4 million tonnes imported in 2024-25.
The exclusion of French-origin wheat from the tender, which has been ongoing since mid-2024, highlights existing trade restrictions and creates opportunities for other suppliers in the Algerian market. Diplomatic tensions between Paris and Algiers are reportedly the cause of this exclusion. This situation benefits suppliers from the Black Sea region and potentially South America and Australia.
Market participants should monitor the evolving dynamics of wheat supply and demand in Algeria, particularly the impact of domestic production initiatives and geopolitical factors on import patterns. Upcoming tenders by OAIC will provide further insights into Algeria's import needs and preferred suppliers. Also, keep an eye on the progress of Algeria's efforts to increase domestic corn production, with a target of 220,000 hectares by 2028, to reduce reliance on imports for animal feed.