European traders claim that Algeria's state grain agency OAIC bought?milling Wheat in an international bid which closed on Thursday.

They said that initial purchases were reported at around $272 per metric ton, including cost and freight.

Initial estimates placed the tonnage of the purchase at several hundreds of thousands metric tons. The agency typically purchases much more than the nominal volume of 50,000 metric tons requested in the tender. Algerian purchases are optional, but traders expect the Black Sea region to be a major source of the purchase, particularly Romania, Bulgaria, and Ukraine.

The tender sought shipment from the main supply regions, including Europe: June 1-15 June 16-30. Traders said that if the wheat is from South America or Australia, it will be shipped one month sooner.

The reports reflect the assessments of traders and it is still possible to estimate prices and volumes later.

Algeria is a major wheat importer. Algeria is an important buyer of wheat from Europe, particularly France. However, Russia and other Black Sea region exporters are expanding their presence in Algeria.

Since mid-2024,?French sales of wheat to Algeria have virtually ceased due to the?diplomatic tensions that exist between Paris and Algiers. Reporting by Michael Hogan from Hamburg, and Gus Trompiz from Paris. Editing by)

(source: Reuters)