HAMBURG/PARIS: Algeria’s state grains agency OAIC is believed to have purchased around 510,000 to 570,000 metric tons of milling wheat in an international tender which closed on Tuesday, European traders said on Wednesday.
This was at the higher end of the 500,000 to 550,000 tons range estimated by traders on Tuesday night. Prices reported on Wednesday were again around $262.50 a ton cost and freight (c&f) included, they said.
This was the same as reported on Tuesday evening. Traders suspected much of the wheat would be sourced from the Black Sea region, although technically the grain can be sourced from optional origins.
Trader reports said around eight companies made sales, but no French trading houses were among them.
There was continued market talk that diplomatic tension between Algeria and France had an impact on the tender, with traders not expecting French wheat to be supplied. Reports reflect assessments from traders and further estimates of prices and volumes are possible later.
The wheat was sought for shipment in 2024 in two periods from the main supply regions including Europe: Nov. 1-15 and Nov. 16-30.
CBOT wheat, soy and corn fall as dollar rallies
If sourced from South America or Australia, shipment is one month earlier.
Algeria is a vital customer for wheat from the European Union, especially France, but Russian and other Black Sea region exporters have been expanding strongly in the Algerian market.
Source: Brecorder
