HAMBURG/PARIS: Algeria’s state grains agency OAIC has bought about 500,000 metric tons of milling wheat in an international tender that closed on Tuesday, European traders said.

Purchases were reported at around $259, $260 and $261 a ton cost and freight (c&f) included, they said.

The size of the purchase in tonnage terms was still debated but initial estimates ranged from 460,000 to around 500,000 metric tons. Most traders said about 500,000 tons but some estimates on Tuesday evening went as high as 600,000 to 690,000 tons.

The purchase is optional origin but was expected to be substantially sourced from the Black Sea region including Ukraine, Romania, Bulgaria and other countries, traders said.

Reports reflect assessments from traders and further estimates of prices and volumes are still expected later.

The wheat was sought for shipment in two periods from the main supply regions including Europe: November 1-15 and November 16-30. If sourced from South America or Australia, shipment is one month earlier. In its previous wheat tender reported on July 15, the OAIC bought about 1 million tons at $253 to $257 c&f a ton. (Reporting by Michael Hogan in Hamburg and Gus Trompiz in Paris. Editing by Mark Potter and Chizu Nomiyama )