European traders reported that Algeria’s state grain agency OAIC bought milling wheat at an international auction which ended on Wednesday.
They said that the cost of a metric tonne, including freight and costs, was around $258.50.
Initial estimates put the tonnage of the order at 500,000-600,000 tons.
Algeria usually buys more than the nominal amount sought in its tenders.
Algerian purchases are of optional origin, but traders suspect the wheat will be sourced in the Black Sea Region or Argentina.
Wheat is shipped in two phases from the main regions of supply, including Europe: between December 1-15 and 16-31. The shipment date is one month earlier if the wheat comes from South America or Australia.
The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later.
Algeria is an important customer of wheat imported from the European Union and France in particular, but Russian exporters as well as those from other Black Sea regions have seen a strong expansion on the Algerian market.
According to traders, a diplomatic split between France and Algeria has led the grains agency tacitly to exclude French wheat and trading firms from its tenders. Relations between the two countries remain tense.
The OAIC purchased about 500,000 tonnes of soft wheat at $259-$261 per ton, c&f. This was primarily sourced from the Black Sea Region. Reporting by Michael Hogan, Hamburg; Gus Trompiz, Paris; editing by Emelia Sithole Matarise
(source: Reuters)
