Algeria’s state grains agency OAIC purchased about 400,000 tonnes of optional-origin milling wheat in an international tender that closed on Wednesday, European traders said. Traders on Wednesday had initially cited a range of 300,000 tonnes to 400,000 tonnes, before narrowing their estimates on Thursday to around 400,000 tonnes. Some reported 390,000 tonnes as the overall purchase size. Like on Wednesday, traders continued to cite a purchase price of around $295 a tonne, cost and freight (c&f) included. OAIC, which does not release details on its tenders, had been seeking wheat for shipment on July 1-15 and July 16-31 from the main supply regions including Europe.
The period was expected to favour French supplies, since some new crop should be available in France during July, whereas harvesting gets under way later in other European countries, like Germany and Poland, that regularly supply Algeria. The wheat was also expected to be shipped mainly during the second half of July to ensure new crop supplies would be available, traders said. OAIC’s tender had specified the possibility of shipment in June if sellers chose to source wheat from South America or Australia.
Algeria is the main export market for European Union wheat. It is usually supplied mostly from France although a small French harvest last year and strong French shipments to China led to German and Polish wheat increasing sales this season. In its previous wheat tender on April 28, OAIC was thought to have bought around 300,000 tonnes at around $316.50 a tonne c&f.