Algeria bought about 600,000 T of wheat in tender -traders

Algeria’s state grains agency OAIC is believed to have purchased about 600,000 tonnes of optional-origin milling wheat in an international tender on Wednesday, European traders said in updated assessments on Thursday.

The price paid for the wheat was estimated at about $448 a tonne c&f, they said.

In first assessments late on Wednesday, traders had reported an initial volume of about 120,000 tonnes, also at $448 a tonne c&f.

Algeria, one of the world’s largest wheat importers, does not release results of its tenders and reports are based on trade estimates.

Some traders said the volume bought may have been slightly below 600,000 tonnes at about 570,000 tonnes.

More detailed assessments of prices and volume are possible later.

The tender sought shipment in two periods from main supply regions including Europe over June 1-15 and June 16-30. If sourced from South America or Australia, shipment is one month earlier.

The price level in the tender was seen as relatively low and suggested that Romanian and Bulgarian supplies could be used for at least part of the order, traders said, adding that French wheat could also be used.

France has traditionally been Algeria’s main wheat supplier.

A diplomatic row between Paris and Algiers and a push by OAIC to attract Black Sea origins led to French wheat being sidelined in OAIC’s tenders earlier this season.

The agency later moved to allow French supplies again, with traders saying disruption to Black Sea supplies owing to Russia’s invasion of Ukraine prompted Algeria’s rethink.
Source: Reuters (Reporting by Michael Hogan and Gus Trompiz Editing by Sybille de La Hamaide and David Goodman )