HAMBURG/PARIS: Algeria’s state grains agency OAIC is believed to have purchased between 870,000 to 900,000 metric tons of milling wheat in an international tender on Tuesday, European traders said on Wednesday.
A series of trader estimates of the purchase on Wednesday were still in a wide range between 700,000 to 870,000 tons, but most around 900,000 tons.
There were individual estimates as high as 1 million tons.
Around ten trading houses made sales which made calculation of the total bought difficult, they said.
This was above estimates of around 600,000 tons on Tuesday evening.
Prices reported early on Wednesday were again between $227.75 to $228 a metric ton, cost and freight (c&f) included, they said.
Some traders put the lower end of the range at $227 a ton.
This was the same as on Tuesday evening. The wheat is to be sourced from optional origins.
But the low prices mean considerable volumes of Black Sea wheat, including Russian, was expected to be supplied, traders said.
European wheat futures hit 3-1/2-year lows on Tuesday largely on pressure from falling prices for wheat from Russia and other Black Sea exporters. In its last wheat tender reported on Jan. 17, Algeria bought about 900,000 tons mostly at about $265.50 a ton c&f.
The wheat in Wednesday’s tender was sought for shipment in two periods from the main supply regions including Europe: June 1-15 and June 16-30.
If sourced from South America or Australia, shipment is one month earlier.
Algeria is a vital customer for wheat from the European Union, especially France, but Russian exporters have been expanding strongly in the Algerian market.
Algeria does not release results of its tenders and reports are based on trade estimates, further estimates of prices and volumes are expected later.