Algeria buys small volume of milling wheat in tender

HAMBURG/PARIS: Algeria's state grains agency OAIC has purchased a small volume of optional-origin milling wheat in an international tender which closed on Tuesday, European traders said in initial assessments on Wednesday.

Estimates of volumes bought ranged from 30,000 tonnes to 60,000 tonnes.

Traders said the unusual requirement to unload at only two relatively small Algerian ports using smaller than usual ships had restricted volumes which could in reality be bought in the tender.

Initial estimates of purchase price were around $320 to $321 a tonne c&f, traders said. More detailed assessments of prices and tonnes bought are still possible later.

The wheat bought was thought likely to be sourced from France.

"The requirement to ship to two minor ports made the shipping difficult and expensive as smaller vessels would have to be used," one German trader said.

"For me, it was more a technical tender with the focus on shipping costs."

The tender sought shipment from main supply regions such as the European Union between March 21-31 and during the whole of April.

Algeria does not release the results of its tenders and reports are based on trade estimates.

In its previous wheat tender in late January, OAIC bought just over 600,000 tonnes, with shipment in March if sourced from main supplier regions including the EU.