Algeria buys about 600,000 T milling wheat in tender
Adds total seen at around 600,000 tons in paragraphs 1-2
HAMBURG/PARIS, Jan 16 (Reuters) -Algeria’s state grains agency OAIC has bought about 600,000 metric tons of milling wheat in an international tender that closed on Tuesday, European traders said in initial assessments.
This was around the high end of first estimates of between 500,000 and 650,000 tons. More estimates of tonnage bought are still possible.
Traders believed the main volume was bought at about $265.50 a ton, cost and freight (c&f) included. Initial estimates of the price were about $265 to $266 a ton but traders said there were indications the purchase was made at a single price.
Traders said they did not believe Russian wheat had been bought heavily in the tender and that France and EU Black Sea countries such as Romania and Bulgaria could be a major source for supply. Technically, Algeria's purchases are always optional origin.
The wheat was sought for shipment in 2024 in two periods -- April 1-15 and April 16-30 -- from the main supply regions including Europe. If sourced from South America, India or Australia, shipment is one month earlier.
Algeria is a vital customer for wheat from the European Union, especially France, but Russian exporters have been expanding strongly in the Algerian market.
Reports reflect assessments from traders and further estimates of prices and volumes are possible later.
Reporting by Michael Hogan in Hamburg and Gus Trompiz in Paris; Editing by David Goodman and Jonathan Oatis
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