HAMBURG/PARIS: Algeria’s state grains agency OAIC is believed to have purchased around 600,000 metric tons of milling wheat in an international tender which closed on Wednesday, European traders said on Thursday.
This was at the higher end of trader estimates of the purchase on Wednesday evening ranging from 500,000 to 600,000 tons. There were still individual estimates of 580,000 tons on Thursday but most traders estimated 600,000 tons.
Traders on Thursday again said all of the purchase was made at $258.50 ton cost and freight (c&f) included, the same as estimated on Wednesday.
Traders suspected much of the wheat would be sourced from the Black Sea region, although technically the grain can be sourced from optional origins. Expected origins included Romania, Bulgaria and Ukraine.
PKRC welcomes govt’s decision on wheat support price
Argentine wheat, currently very cheap, was also named as a possible origin, but November/December shipment could be too early for Argentina’s new crop, traders said.
The wheat is sought for shipment in two periods from the main supply regions including Europe: December 1-15 and December 16-31. If sourced from South America or Australia, shipment is one month earlier.
Reports reflect assessments from traders and further estimates of prices and volumes are possible later.
Comments
Comments are closed for this article.