Argentine wheat is competing with Russian supplies

The wheat market is truly a buyer's market, we can state. Saudi Arabia and Algeria announced the results of their tenders yesterday, and it can be concluded that the sellers have written sharply. Wheat from the Black Sea region has often been the cheapest lately. Argentina is also entering the competition for customers after a good harvest. Safras & Mercado came out yesterday with a forecast for soybeans in Brazil. The harvest is heading towards a record while the demand for Brazilian soybeans is actually declining somewhat. The March contract for wheat on the Matif closed €0.50 higher at €191.25 per ton yesterday. There was no trading on the CBoT yesterday. The exchange was closed due to Martin Luther King Day in the US. The closure of the exchange in Chicago was also somewhat noticeable in Paris. With a volume of 31,000 contracts, it was quieter than normal. 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 ton C&F (cost and freight). The delivery of the wheat is scheduled for April and May. According to sources, most of the contracted wheat comes from the Black Sea region. The quality of the wheat from Argentina supposedly does not meet the requirements of Saudi Arabia. The tender was for bread wheat with at least 12.5% protein. Argentina preferred by Algeria The results of a tender from Algeria have also been announced. That country secured 600,000 tons of wheat in the tender that closed yesterday for an average price of $254 per ton C&F. Some sources report that the contracted volume is larger than what the tender was open for and mention 720,000 tons. According to sources, the wheat purchased by Algeria comes entirely, or at least for a significant part, from Argentina. Due to a good harvest, Argentina is bringing wheat to the market at very sharp prices. The prices are so low that even wheat from the Black Sea region cannot compete, says a trader at Reuters. The delivery for the wheat in the Algerian tender is scheduled for March. The Ikar quotation for Russian wheat edged up. The price stands at $227.50 per ton FOB (free on board). Thus, the Ikar quotation is $2.50 higher than last week, the market office writes. 5% larger harvest In Brazil, soybeans are the focus. Market agency Safras & Mercado came out yesterday with the estimate of soybean production and export from Brazil. The total amount of soybeans available in 2026 is estimated at 183.79 million tons. This is 5% more than last year. According to the agency, the demand for soybeans is expected to decline 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. The ending soybean stock in Brazil is expected to increase by 241% from 4.51 million tons to 15.37 million tons according to the agency. The figures in the forecast reflect the record soybean harvest Brazil is heading towards according to Safras & Mercado.