Algeria bought about 500,000 tonnes of wheat in tender

• The wheat was sought for shipment in two periods, Jan. 1-15 and Jan. 16-31, 2020.
• Algeria does not disclose the results of its tenders and purchase reports are based on trade assessments.
• OAIC was thought to have paid about $223-$224 a tonne, cost and freight (c&f), for the wheat.

HAMBURG: Algeria's state grains agency OAIC purchased about 500,000 tonnes of milling wheat in an international tender which closed on Wednesday, European traders said on Thursday.

OAIC was thought to have paid about $223-$224 a tonne, cost and freight (c&f), for the wheat, the traders said.

Four trading houses made sales in the tender, they said.

Algeria does not disclose the results of its tenders and purchase reports are based on trade assessments.

The wheat was sought for shipment in two periods, Jan. 1-15 and Jan. 16-31, 2020. If sourced from South America, shipment is between Dec. 1-15 and Dec. 16-31.

The origin of the wheat is at the seller's option but traders thought most of it would be sourced from France, Algeria's main wheat supplier.

Traders were also digesting a separate announcement by Algeria's government late on Wednesday that it would cap annual wheat imports at 4 million tonnes compared with about 6 million now in order to save foreign currency.

The announcement followed moves this year by the authorities to tackle corruption in its subsidised flour-making system against a backdrop of popular protests, although traders were sceptical Algiers could make a major reduction in wheat imports.