The wheat market is truly a buyer's market, we can safely say. Saudi Arabia and Algeria announced the results of their tenders yesterday, and it's clear that sellers have bid competitively. Wheat from the Black Sea region has often been the cheapest recently. Argentina, after a good harvest, is also joining the battle for customers. Safras & Mercado released a forecast for soybeans in Brazil yesterday. The harvest is heading towards a record, while demand for Brazilian soybeans is actually declining slightly.
The March wheat contract on the Matif closed yesterday €0,50 higher at €191,25 per tonne. There was no trading on the CBoT yesterday, as the exchange was closed for Martin Luther King Day in the US. The Chicago exchange's closure was also somewhat noticeable in Paris. With a turnover of 31.000 contracts, it was quieter than usual.
Saudi Arabia has purchased 907.000 tons of wheat in a tender, the Saudi General Food Security Authority announced yesterday. The average price in the tenders is $260,91 per tonne, C&F (carriage paid). Delivery of the wheat is scheduled for April and May. According to sources, the majority of the committed wheat comes from the Black Sea region. The quality of the wheat from Argentina reportedly does not meet Saudi Arabia's requirements. The tender was for breadmaking wheat with at least 12,5% protein.
Argentina is preferred by Algeria
The results of a tender from Algeria have also been announced. In the tender that closed yesterday, that country secured 600.000 tons of wheat at an average price of $254 per ton C&F. Some sources report that the secured volume exceeds the tender's initial opening, suggesting a total of 720.000 tons. According to sources, the wheat Algeria purchased comes entirely, or at least significantly, from Argentina. Thanks to a strong harvest, Argentina is selling the wheat at very competitive prices. "The prices are so low that even wheat from the Black Sea region can't compete," a trader told Reuters. Delivery of the wheat in the Algerian tender is scheduled for March.
The Ikar price for Russian wheat rose a notch. The price stands at $227,50 per tonne FOB (delivered on ship). This puts the Ikar price up $2,50 from last week, according to the market bureau.
5% higher harvest
In Brazil, soy is the dominant commodity. Yesterday, market bureau Safras & Mercado released its estimate for Brazil's soybean production and exports. The total amount of soy available in 2026 is estimated at 183,79 million tons, a 5% increase compared to last year. According to the bureau, demand for soybeans will decrease by 1% to 168,42 million tons. In total, Brazil will export 105 million tons this year. Safras & Mercado does not expect Brazil to import soybeans this year. In 2025, 969.000 tons were imported. According to the bureau, Brazil's final soybean stocks will increase by 241%, from 4,51 million tons to 15,37 million tons. The forecast figures reflect the record soybean harvest that Brazil is heading for, according to Safras & Mercado.