Algeria's state grain agency OAIC reportedly purchased?600,000.00 metric tons milling wheat during a tender that closed on?Tuesday. Negotiations continued on Wednesday.

Traders said that the purchase price was between $259 and 260 per ton, including freight (c&f). This is the same level as Tuesday's report.

Traders said that negotiations on Wednesday regarding?more purchases? were difficult because sellers?were requesting more than $260, a price level which was resisted by OAIC.

Algeria's tender purchase is optional origin, but prices indicate that Black Sea region wheat can be purchased from Ukraine, Romania, and Bulgaria. Argentine wheat is not expected to be purchased as supplies are getting tighter following recent large?sales.

Wheat was requested for shipment from three main supply regions including Europe: April 16-30; May 1-15; and May 16-31. If the wheat is sourced from South America, Australia or Africa, it will be shipped one month sooner.

The reports?reflect the assessments of traders, and further estimates?of volumes and prices are possible later. In its previous tender on January 19, 'Algeria' bought about 600,000 tons of milling grain at a cost of $254 per ton c&f.

(source: Reuters)