European traders reported on Thursday that Algeria’s state grain agency OAIC purchased approximately 600,000 metric tonnes of milling wheat at an international auction which ended on Wednesday.
The trader estimates for the purchase of Wednesday evening ranged from 500,000 tons to 600,000. On Thursday, there were individual estimates of up to 580,000 tons but the majority of traders estimated 600,000.
On Thursday, traders confirmed that the total purchase price was $258.50 per ton including freight and cost (c&f), the same estimate as on Wednesday.
Technically, the grain can come from any origin. However, traders suspected that most of the wheat was coming from the Black Sea Region. Origins expected included Romania, Bulgaria and Ukraine.
Argentine wheat was also mentioned as a potential origin. However, November/December shipping could be too soon for Argentina’s brand new crop, traders stated.
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 assessments of traders, and it is possible to estimate prices and volume later. Reporting by Michael Hogan, Hamburg and Gus Trompiz, Paris
(source: Reuters)
