Algerian wheat buy seen at up to 900,000 metric tons -traders
Algeria’s state grains agency OAIC is believed to have purchased up to 900,000 metric tons of milling wheat in an international tender on Tuesday, European traders said on Wednesday.
This was above estimates of around 600,000 tons on Tuesday evening. Some traders continued to speak of a range between 600,000 to 900,000 tons, but 900,000 tons was most frequently spoken of.
Prices reported on Wednesday were again mostly at around $265.50 a metric ton cost and freight (c&f) included, the same as on Tuesday evening. But as on Tuesday, some traders on Wednesday again spoke of a price range between $265 to $266 a ton.
The wheat is to be sourced from optional origins. French and EU Black Sea wheat including from Romania and Bulgaria was tipped to be supplied, Russian wheat was not expected to be shipped in large volumes, traders said.
Algeria is a vital customer for wheat from the European Union, especially France, but Russian exporters have been expanding strongly in the Algerian market.
Algeria does not release results of its tenders and reports are based on trade estimates, further estimates of prices and volumes are expected later.
The wheat was sought for shipment in two periods, April 1-15 and April 16-30, from the main supply regions including Europe.
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