HAMBURG/PARIS: Algeria’s state grains agency OAIC is believed to have purchased about 600,000 metric tonnes of milling wheat in a tender which closed on Tuesday with negotiations continuing on Wednesday, European traders said.
Purchases were believed to have been made at around $259 and $260 a tonne cost and freight included (c&f), traders said, the same level as reported on Tuesday.
Negotiations on Wednesday about more purchases were said to have been difficult as sellers were seeking over the $260 level, a level resisted by the OAIC, traders said.
Algeria’s tender purchases are optional origin but prices indicated Black Sea region wheat could be supplied including from Ukraine, Romania and Bulgaria, traders said. Argentine wheat was not expected to be used as supplies were getting tighter after large recent sales.
The wheat was sought for shipment in three periods from the main supply regions, including Europe: April 16-30, May 1-15 and May 16-31. If sourced from South America or Australia, shipment is one month earlier.
Reports reflect assessments from traders and further estimates of prices and volumes are still possible later. In its previous tender on January 19, Algeria bought around 600,000 tonnes of milling wheat at about $254 a tonne c&f.
