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Algeria tenders again to buy wheat for July shipment

Algeria tenders again to buy wheat for July shipmentHAMBURG/PARIS: Algeria has issued an international tender to buy milling wheat for shipment in July, traders said on Tuesday, suggesting the major grain importer had not fully met its needs in a previous tender covering the same month.

State grains agency OAIC is seeking optional-origin wheat to be shipped on July 1-15, indicating a nominal volume of 50,000 tonnes that is usually exceeded in its actual purchase, traders said.

The bidding deadline is on Thursday, May 31, they said.

OAIC has already bought milling wheat for July shipment in a tender held in late April, with traders reporting at the time a volume of 420,000 tonnes.

But traders now said the purchase was smaller at 360,000 tonnes and with only a third of the volume to be shipped in the first half of July, leaving Algeria lagging its normal wheat import pace.

“We can suppose that the uneven spread in volume between the first and second half of July has left them worried about their supply being unbalanced, especially with Ramadan ending in mid-June,” one trader said.

OAIC, one of the world’s biggest grain importers, does not disclose details of its tenders and results reported by traders are estimates.

The first half of July could prove an awkward period for French wheat, the main origin bought by Algeria, traders added.

Availability of new crop is dependent on a quick start to summer harvesting, while old-crop supplies have become difficult to find because of logistical snags linked to rolling rail strikes.

Copyright Reuters, 2018

Source: Brecorder

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