Algeria buys milling wheat in tender, traders say
HAMBURG/PARIS: Algeria's state grains agency OAIC has bought milling wheat in an international tender which closed on Wednesday, European traders said.
Purchases were initially reported at around $244.50 a metric ton cost and freight (c&f) included, they said.
The precise size of the purchase in tonnage terms was not initially clear. But preliminary trader estimates were of a large purchase of between 600,000 and 700,000 metric tons.
Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.
The tender sought a nominal 50,000 metric tons but Algeria often buys considerably more than the indicative volume. Sellers can supply wheat from a range of approved origins.
The wheat is sought for shipment in two periods from the main supply regions including Europe: July 1-15 and July 16-31. 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 and other Black Sea region exporters have been expanding strongly in the Algerian market.
Traders say a diplomatic rift between France and Algeria led the grains agency to tacitly exclude French wheat and trading companies from its purchase tenders, with relations between the two countries remaining tense.
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