While international demand for wheat rose, prices on the Paris futures market dropped again on Tuesday, January 20, following a slight increase.
Algerian wheat purchases
The news about substantial wheat purchases by Algeria and Saudi Arabia caused some movement at the start of the week. The Algerian grain agency bought 600,000 tons of milling wheat on Monday, January 19, in an international tender. This wheat mainly comes from Argentina due to its low-price level.
Saudi demand exceeds expectations
Saudi Arabia is estimated to have bought 907,000 tons of wheat on Monday as part of an international tender, which was more than expected. The bulk of this wheat is expected to originate from the Black Sea region, particularly Romania and Bulgaria. Given the substantial global supply of wheat, this increase in demand is crucial to help prevent an even greater buildup of stocks in exporting countries.
Wheat futures briefly rise
On the Paris futures market, the wheat trade closed on Monday with the first expiring contract (March 2026) €0.50 higher at €191.25 per ton. By Tuesday, this small increase had already disappeared – the futures market closed at €189.50.
