HAMBURG/PARIS, Aug 8 (Reuters) - Algeria’s state grains agency OAIC has purchased around 600,000 to 700,000 metric tons of milling wheat in an international tender which closed on Thursday, European traders said.
Purchases were reported at around $250.50 to $252 a ton cost and freight (c&f) included, they said. Earlier trader estimates of purchases up to $253 a ton c&f were regarded as too high by traders in late evening assessments.
Traders had earlier suspected a substantial purchase but were unsure of the volume. Late evening consensus of the volume bought was between 600,000 to 700,000 metric tons.
Algeria’s purchases in tenders are optional origin but traders initially suspected low prices mean Russian wheat would be largely sourced to supply the purchase, possibly along with other Black Sea origins.
Reports reflect assessments from traders as Algeria does not announce the results of its purchase tenders and further estimates of prices and volumes are still possible later.
The wheat is sought for shipment in 2024 in two periods from the main supply regions including Europe: Oct. 1-15 and Oct. 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.
In its last reported wheat tender on July 18, Algeria purchased about 700,000 to 750,000 tons at between $241 to $244 a ton c&f included. Traders expected the July purchase to be sourced from the Black Sea region, including Russia, Ukraine and Bulgaria. (Reporting by Michael Hogan in Hamburg and Gus Trompiz in Paris, Editing by Marguerita Choy)
