Algeria buys 580,000 T wheat in tender

 16 Nov 2016 - 17:53

Algeria buys 580,000 T wheat in tender
Wheat grows on a farm at sunset in the flooded midwestern New South Wales town of Forbes, Australia, September 27, 2016. REUTERS/Jason Reed/File photo

Reuters

PARIS: Algeria's state grains agency OAIC bought 580,000 tonnes of optional-origin milling wheat in a tender that closed on Tuesday, European traders said on Wednesday.

Prices paid ranged from $201 to $201.50 a tonne, cost and freight included, and shipment was due in January, they said. 

Traders had cited earlier a volume of at least 400,000 tonnes but they later said OAIC had purchased a larger volume. 

Algeria, one of the world's largest grain importers, does not publish details of its international tenders and results can be revised when traders report additional sales.

Algeria's tenders have drawn particular attention this season as traders have watched to see where the North African country would source its wheat after a poor harvest in France, which usually supplies the vast majority of Algerian wheat imports.

The origin of wheat supplied is at the seller's option, but traders thought it was likely to be sourced from the United States, Germany and the Baltic states, with any U.S. wheat to be of the hard red winter (HRW) variety.

Argentine wheat was very competitively priced but traders said it may not meet Algeria's strict limit on bug damage. 

French wheat was not cited as a leading contender to fill the tender purchase, but some traders said it might still claim a part of the volume as in previous tenders, depending on market conditions up to the shipment period.