Algeria's state grains agency OAIC purchased about 500,000 tonnes of milling wheat in an international tender that closed on Wednesday, European traders said on Thursday. OAIC was thought to have paid about $223-$224 a tonne, cost and freight (c&f), with the sales made by four trading houses, the traders said.
Algeria does not disclose results of its tenders and purchase reports are based on trade assessments. Some traders pegged the total volume at 540,000-550,000 tonnes and cited highest prices at $224.50. The wheat was sought for shipment in two periods, Jan. 1-15 and Jan. 16-31. If sourced from South America, shipment is Dec. 1-15 and December 16-31.
The origin of the wheat is the seller's option but traders thought most of it would be sourced from France, Algeria's main wheat supplier.
New-crop Argentine wheat, which can compete with European origins in Algeria at the turn of the calendar year, was not expected to gain a significant share, traders said.
Traders were also digesting a separate announcement by Algeria's government that it would cap annual milling wheat imports at 4 million tonnes, down from 6 million tonnes, to save foreign currency.
The announcement follows moves by the authorities to tackle corruption in Algeria's subsidised flour-making system against a backdrop of popular protests.
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