HAMBURG/PARIS: Algeria’s state grains agency OAIC is believed to have purchased about 600,000 metric tons of milling wheat in an international tender that closed on Thursday, European traders said on Friday.
This was at the higher end of trader estimates that had ranged from 480,000 to 600,000 tons.
There were still individual trade estimates on Friday putting the purchase below 600,000 tons, but the majority of traders put the volume at about 600,000 tons.
Prices reported on Friday were again around $263 a ton cost and freight (c&f) included, they said.
This was the same as reported on Thursday evening. Traders suspected that much of the wheat would be sourced from the Black Sea region, though the grain can be sourced from optional origins.
Expected origins included Romania and Bulgaria, Ukraine, some Russian and possibly new crop Argentine wheat.
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.
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Traders said Algeria excluded French companies from its previous wheat tender on Oct. 8 and required that participating firms did not offer French-origin wheat in apparent fallout from renewed diplomatic tensions between Algiers and Paris.
Traders said on Wednesday that French companies had been invited to participate in Thursday’s tender but could only offer non-French wheat.
Reports reflect assessments from traders and further estimates of prices and volumes are possible later.
The wheat is sought for shipment this year in two periods from the main supply regions including Europe: Dec. 1-15 and Dec. 16-31.
If sourced from South America or Australia, shipment is a month earlier.
Source: Brecorder
