European traders reported that Algeria's state grain agency OAIC bought between 390,000 and 420,000 metric tons of milling wheat at an international?tender that closed on Wednesday.

The traders were still assessing the size of the order in terms of tonnage, but it was lower than some initial estimates which had been around 650,000?tons.

Initial reports indicated that the cost of a ton with freight (c&f), including shipping, was $268, $269, and $270. The majority were said to be purchased at $270.

Algerian purchases are optional, but traders anticipated that the Black Sea region, particularly Romania and Bulgaria, would be a substantial source of the purchase.

The tender requested shipment from two main supply regions, including Europe: July 1-15 July 16-31. The wheat must be shipped one month earlier if it comes from South America or Australia.

Later, it is still possible to estimate prices and volume. Algeria is the largest wheat importer in the world. It has been a major customer of wheat imported from the European Union and especially France, but Russia, as well as other exporters in the Black Sea region, have seen a strong expansion. In March, the OAIC purchased?690,000 tonnes of wheat at $272 per ton - cost and freight included. Reporting by Michael Hogan, Hamburg; Gus Trompiz, Sybille De La Hamaide and Emelia Sithole Matarise in Paris.

(source: Reuters)