Algeria, one of the largest wheat importers in the world, yesterday surprised with an exceptionally small bidding over 150,000 tons for delivery in June. This increases the uncertainty among the exporters in France and the estimate of the final stock in the EU.
The usual monthly import requirement of Algeria is given as 450,000 to 500,000 tons.
The question now is whether Algeria will reissue this season or have enough supplies to wait until the next marketing season. In France, the most important supplier of wheat to Algeria, grain harvest and export will start in July.
Algeria also bought less yesterday than in the previous tender when 340,000 tons were purchased for May delivery. Looking at Algeria's previous imports throughout the season, imports are already well above those of the previous year.
The last call was again served from France, although Argentina has become a serious competition. Algeria has so far imported 3 million tonnes from France, exporting 5 million tonnes of wheat to countries outside the EU.
It may be necessary for analysts to increase their estimates of final wheat stocks in the EU, if there are no more orders from Algeria. It may be that France's exporters are now offering more aggressively, putting pressure on grain prices in the EU.
Text: HANSA Derivatives Trading GmbH /
