Algeria buys milling wheat, expected largely Russian origin

Algeria’s state grains agency OAIC has bought milling wheat in an international tender which closed on Monday with supplies expected to be sourced largely from Russia, European traders said in initial assessments.

Tonnage bought was initially estimated at around 400,000 tonnes. Traders suspected Russian wheat would be used to supply much of the purchase although technically Algeria’s purchases are optional origin.

Traders said around 300,000 metric tons was bought at around $261.50 a metric ton cost and freight (c&f) included, they said. Traders also reported purchases of about 100,000 metric tons mostly in a range of about $1 to $2 a metric ton above this level with the highest price spoken of at $264.50.

Results reflect assessments from traders and further estimates of prices and volumes are still possible later.

The wheat was sought for shipment in two periods from the main supply regions including Europe: Aug. 1-15 and Aug. 16-31. If sourced from South America or Australia, shipment is one month earlier.

Algeria does not release results of its tenders and reports are based on trade estimates. Algeria is a vital customer for EU wheat, especially from France, but Russian grain has been aggressively expanding its presence in the Algerian market recently.

Source: Hellenics Shipping News