Algeria’s Wheat Tender Boosts European Prices Amid Risk of French Exclusion

A new Algerian tender to purchase milling wheat has drawn the attention of European grain market participants, who are closely watching the potential volume of purchases and their impact on prices. France, meanwhile, faces the prospect of its wheat being excluded from the tender once again amid political tensions between Paris and Algiers.

Paris-listed Euronext milling wheat futures rose 0.5% on Monday to €243.25 per tonne, supported by the Algerian tender, fading hopes of a Russia-Ukraine peace deal that could pave the way for the resumption of grain exports through the Black Sea, and a weaker euro, Reuters reported.

Algeria’s state grain agency, the Algerian Interprofessional Office of Cereals (OAIC), issued an international tender to purchase milling wheat, with bids due to close on Tuesday, October 13. The tender carries a nominal volume of 50,000 tonnes. However, Algeria frequently purchases substantially more than the volumes specified in its tenders, making its buying activity a key focus for exporters and European grain market participants.

Traders are watching for the possibility that the tender could remove hundreds of thousands of tonnes from available supplies, potentially lending further support to prices. Algeria purchased around 500,000 tonnes in its previous tender on September 15, but the impact on the market remained limited amid expectations that French wheat could again be excluded.

The prospect of another exclusion is a significant concern for French exporters, as it reflects the political tensions between Paris and Algiers, according to Reuters. A continued freeze on French supplies could limit exporters’ ability to benefit from Algerian demand, which remains an important factor shaping European wheat trade flows.

The price gains also came as hopes for progress towards a Russia-Ukraine peace agreement faded. Earlier remarks by US President Donald Trump regarding a ceasefire covering energy infrastructure had initially fuelled expectations that grain exports through the Black Sea might resume. However, renewed Russian attacks on Ukrainian energy facilities, reported by President Volodymyr Zelenskyy, cast further doubt on the prospects for a near-term settlement.

Market attention is now focused on the outcome of Algeria’s tender, particularly the volume purchased and whether French wheat will be excluded again. Both factors could influence price movements and shape the outlook for European wheat exporters.