Algeria OAIC Buys Wheat in Tender

Algeria’s state grains agency OAIC has bought around 540,000 to 720,000 metric tons of milling wheat in an international tender which closed on Wednesday, European traders said. The size of the initial purchase in tonnage terms was not immediately certain, as is usual in Algerian tenders. Most estimates on Wednesday evening were about ‌720,000 tons ‌but some later trader estimates were ‌around ⁠540,000 tons.

Purchases ⁠were reported at around US$289 to US$290 a ton cost and freight (c&f) included, they said. Some estimates put the highest price at US$289.50 a ton c&f. The wheat can be sourced from optional origins, but traders expected Romania ⁠and Bulgaria to be major suppliers. Russian ‌wheat was offered ‌but not favored despite cheap prices, apparently because ‌of concern about the impact of recent ‌attacks on Russian shipping and ports.

The wheat is sought for shipment in three periods from the main supply regions including Europe: September 15 ‌to September 30, October 1 to October 15 and October 16 to ⁠October ⁠31. If sourced from South America, India or Australia, shipment is one month earlier. Reports reflect assessments from traders and further estimates of prices and volumes are still possible later. In its last soft wheat tender on June 17, Algeria bought over 800,000 tons at around US$264 to US$265 a ton c&f.