Wheat crop failure in France to benefit Russia on Algerian market




France might cut wheat supply to Algeria to 1.5-2 mln tonnes in 2020/21 MY compared to 5 mln tonnes in 2019/20 MY amid crop failure. This opens up new opportunities for Russian wheat, informed APK-Inform.

On the other hand, the current prices of Russian wheat are close to 6-years high that hurt its competitiveness. Some traders suppose that Russian wheat is not able to compete on Algerian market this season amid high prices. Some changes in supply structure of wheat to Algeria will be observed since the next season.

“The share of French wheat in the overall structure of Algerian imports reached 90% in some years. If Russia starts to export wheat to Algeria, the share of France will decline to 60% even under sufficient crop. Therefore, France will be forced to look for new buyers”, - the experts said.

USDA set wheat import to Algeria at 7 mln tonnes in 2020/21 MY, down slightly from 7.1 mln tonnes in the preceding season.

APK-Inform mentioned gradual decline of wheat import to Algeria amid growing inner production and desire to cut import costs. The government stimulates wheat production as well as calls for consumption decrease and avoiding of bread waste.