UPDATE 1 — Algerian wheat purchase seen at around 660,000 to 720,000 tons, traders say

(Adds background from paragraph 4) HAMBURG/PARIS, Oct 14 (Reuters) — Algeria's state grains agency OAIC is believed to have purchased around 660,000 to 720,000 metric tons of milling wheat in an international tender on Tuesday, European traders estimated on Wednesday. This was above trader estimates of the purchase on Tuesday evening, which had mostly been around 600,000 tons. Trader estimates on Wednesday of the prices were the same as on Tuesday at around $326 and $326.50 a ton cost and freight (c&f) included, they said. Reports reflect assessments from traders and further estimates of prices and volumes are possible later. Algeria’s purchases are optional origin, but traders said they expected likely sources to include Baltic Sea region wheat, including Russian supplies shipped from Baltic ports, plus Romanian, Bulgarian and Argentine wheat. The wheat is 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 conflict bringing ship-borne Black Sea exports of cheap Russian