European traders reported that Algeria's state grain agency OAIC bought milling wheat at an international auction which ended on Wednesday.

They said that the initial price of first purchases was around $258.50 per metric ton, including freight and cost.

The amount of the purchase was initially unclear in terms of tonnage. Algerian purchases are of optional origin, but traders believed the wheat would come from Argentina or the Black Sea Region.

Wheat is shipped in two phases from the main regions of supply, including Europe: between December 1-15 and 16-31. The shipment date is one month earlier if the wheat comes from South America or Australia.

The reports reflect the opinions of traders, but further estimations of volumes and prices are possible. Reporting by Michael Hogan, Hamburg and Gus Trompiz, Paris

(source: Reuters)