Algeria sharply raises wheat purchase price amid shipping risks

Amid rising shipping risks, Russian wheat, despite its lower price, was not in significant demand at the Algerian tender.

Algeria’s state grain operator OAIC purchased about 720,000 tons of soft food wheat of any origin on August 5,  according to analysts at ASAP Agri.

According to market participants, the average purchase price was $289–290 per ton C&F. This is about $25/ton more than during the previous OAIC tender on June 17, when wheat was purchased at $264–265/ton C&F.

Compared to a similar tender in July 2025, the difference is even greater: then the price was $253–257/ton C&F, meaning the current purchase was about $33–36 per ton more expensive.

Despite the fact that the tender provided for the possibility of supplying wheat from any country, traders expect Romania and Bulgaria to be the main suppliers.

Russian wheat was also offered in the tender, and at a lower price. However, there was no significant demand for it. According to market participants, one of the main reasons was concerns about shipping security after recent attacks on Russian ports and merchant ships.

Thus, cheaper Russian wheat this time could not compensate for additional logistical and security risks for buyers.

Deliveries of the purchased grain are planned in three batches: September 15–30, October 1–15 and October 16–31. For suppliers from South America, India and Australia, shipment is planned a month earlier.

The increase in price in the Algerian tender occurs against the background of a general complication of the logistics of grain flows. For buyers, not only the direct price of grain, but also the reliability of its delivery route is becoming an increasingly important factor – and this time this factor clearly played against the Russian origin.

 At the same time, as USM wrote the day before, the restoration of sea exports of agricultural products from Ukraine requires international support.