Algeria buys milling wheat in tender, traders say

HAMBURG/PARIS, Oct 13 (Reuters) — Algeria’s state grains agency OAIC has bought milling wheat in an international tender which closed on Tuesday, European traders said. Purchases were initially reported at around $326 and $326.50 a metric ton cost and freight (c&f) included, they said. The size of the initial purchase in tonnage terms was not initially clear but traders said the purchase involved several hundred thousand metric tons with some initial estimates around 600,000 metric tons. Reports reflect assessments from traders and further estimates of prices and volumes are still possible later. Algeria’s purchases are optional origin, but traders said they expected Baltic Sea region wheat, including Russian shipped from Baltic ports, plus Romanian, Bulgarian and Argentine wheat to be among likely sources. The wheat was sought for shipment in two periods from Algeria's main supply regions including Europe: December 1-15 and December 16-31. If sourced from South America, India or Australia, shipment is one month earlier. The tender took place at a difficult time for importers, with fighting bringing ship-born Black Sea exports of cheap Russian and Ukrainian wheat to a virtual stop.