Algeria buys 420,000 to 500,000 tonnes milling wheat in tender
- Several traders cited 480,000 tonnes.
HAMBURG/PARIS: Algeria's state grains agency OAIC has purchased about 420,000 to 500,000 tonnes of optional-origin milling wheat in an international tender which closed on Tuesday, European traders said in assessments on Wednesday.
Traders on Tuesday evening initially put the purchase at around 400,000 tonnes. Estimates on Wednesday were in a range of between 420,000 to around 500,000 tonnes with at least six trading houses said to have made sales.
Several traders cited 480,000 tonnes.
Trader estimates of purchase price were on Wednesday still around $297.50 and $298 a tonne c&f, the same as on Tuesday evening.
The wheat was sought for shipment in two periods from the main supply regions including Europe: Aug. 1-15 and Aug. 16-31. If sourced from South America or Australia, shipment is between July 1-15 and July 16-31.
"I suspect a large proportion of the purchase will be sourced in Germany and other suppliers in the Baltic Sea region," one German trader said. "I would not bet on France getting a big share."
Algeria does not release results of its tenders and reports are based on trade estimates.
Algeria is a vital customer for wheat from the European Union, especially France and Germany.
In its last wheat tender in May, Algeria bought around 400,000 tonnes at about $295 a tonne c&f.
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