Algeria purchased 550-570 thsd tons of wheat at a tender

Algeria’s state grain agency OAIC bought an estimated 550,000 to 570,000 metric tons of milling wheat in an international tender that ended Tuesday, European traders said.

Buys were mostly at around $244.50 per metric ton, including cost and freight (c&f), they said. Some traders said purchases were also made at $245 per ton c&f.

The wheat was expected to come mainly from the Black Sea region, particularly Romania, Bulgaria and Ukraine.

The reports reflect traders’ estimates, and further price and volume estimates are possible later.

The tender called for a nominal 50,000 metric tons, but Algeria often buys significantly more than the indicative volume. Sellers can source wheat from a number of approved sources.

Wheat is requested for shipment in two periods from major supply regions, including Europe: August 10-20 and August 21-31. If the wheat is shipped from South America or Australia, shipment is a month earlier.

Some traders said prices were aggressively low because some sellers wanted to clear out storage space as the crops arrived.

Algeria is an important buyer of wheat from European Union countries, especially France, but Black Sea exporters have been aggressively expanding their presence in the Algerian market.

Traders said diplomatic spats between France and Algeria had led the grain agency to tacitly exclude French wheat and trading companies from some recent purchasing tenders, while relations between the two countries remained frosty.

Tags: tender, wheat, Algeria