Monday, 07 September 2015 20:25
PARIS: Algeria’s state grains agency bought 550,000 tonnes of optional-origin milling wheat in a tender last week, more than initially reported, European traders said on Monday.
Algeria, one of the world’s largest grain importers, does not publish details of its tenders and results cited by trade sources are estimates.
Traders had said last week that state grains agency OAIC booked at least 400,000 tonnes of wheat at between $ 195 and $ 196 a tonne, cost and freight, for shipment in October and November.
The price range and shipping period were reiterated by traders on Monday, but they said the consensus regarding the volume was now 550,000 tonnes, suggesting Algiers was taking advantage of falling international prices.
Algeria has bought nearly 3 million tonnes of milling wheat for shipment between July and November, equivalent to almost 600,000 per month, which is well above what traders see as its monthly need of around 450,000 tonnes to meet domestic demand.
US wheat futures dropped to a five-year low last week, while benchmark futures in Paris are trading at their lowest in almost a year, weighed down by ample global supply that has created stiff competition on export markets.
France, usually Algeria’s main wheat supplier, is thought to have lost some market share in recent tenders to cheaper supply from the Baltic states.
But exporters facing slow demand for a record-large French harvest could decide to use the latest Algerian tender to shift some French crop, traders said.
