Algeria buys around 540,000 to 720,000 tons of wheat in tender

HAMBUR G/PA RIS/DUBAI: Algeria’s state grains agency OAIC has bought around 540,000 to 720,000 metric tons of milling wheat in an international tender which closed on Wednesday, European traders said. The size of the initial purchase in tonnage terms was not immediately certain, as is usual in Algerian tenders. Most estimates on Wednesday evening were about 720,000 tons but some later trader estimates were around 540,000 tons.

Purchases were reported at around USD289 to USD290 a ton cost and freight (c&f) included, they said. Some estimates put the highest price at USD289.50 a ton c&f.

The wheat can be sourced from optional origins, but traders expected Romania and Bulgaria to be major suppliers. Russian wheat was offered but not favoured despite cheap prices, apparently because of concern about the impact of recent attacks on Russian shipping and ports.

The wheat is sought for shipment in three periods from the main supply regions including Europe: September 15 to September 30, October 1 to October 15 and October 16 to October 31.

If sourced from South America, India or Australia, shipment is one month earlier. Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

In its last soft wheat tender on June 17, Algeria bought over 800,000 tons at around USD264 to USD265 a ton c&f.