Algeria successfully completed a tender for the purchase of wheat

The Algerian state-owned company OAIC successfully purchased from 550 to 580 thousand tons of milling wheat in an international tender that took place on November 7. The Zerno On-Line agency reports this, citing information from Reuters. The purchase was completed at a price of $266 per ton on a C&F basis.

Experienced traders note that the contracted wheat originates from Russia, Romania, Bulgaria and France. Russian wheat is the most budget option, but there are some doubts about Russia's ability to provide the required volume. Because of this, the use of mixed origin is possible.

The shipment duration is planned to be divided into three batches: December 16-30, 2023, January 1-15, 2024 and January 16-31, 2024. It is also possible to reconfigure shipments at an earlier date if the condition of delivery from South America or Australia is met.

This new purchase contract for milling wheat underscores Algeria's state-owned company OAIC's commitment to diversifying its supply of grain products. The diversity of origin of purchased wheat allows the company to reduce the risks associated with potential problems with a single source of supply.

The tender comes at an important time for the grain market and its successful completion demonstrates the strategic planning and optimal exploitation of market opportunities on the part of the Algerian state-owned company OAIC. This also confirms the importance of wheat as one of the key grain products ensuring food security in Algeria.

The award of the contract at an acceptable price is an important step for the Algerian state company OAIC in ensuring a stable supply of milling wheat and strengthening its position in the market. This also demonstrates the trust between the Algerian state company OAIC and its suppliers, which greatly contributes to the development of mutually beneficial relationships in the international grain market.

The purchase of 550-580 thousand tons of milling wheat is a significant volume, which demonstrates Algeria's need for this product and the importance of guaranteed supply to meet the country's needs. The announcement of such a purchase on the international market will highlight Algeria's role as a leading consumer of grain and will help expand business partnerships and opportunities for Algeria's state-owned company OAIC.

Overall, the successful completion of this tender is a positive signal for the Alzhikh state company OAIC and the international grain market in general. It highlights the company's efficient performance and ability to win large contracts, which helps strengthen its leadership in the industry.