HAMBURG/PARIS: Algeria’s ‍state grains agency ‍OAIC has bought around 600,000 metric ​tons of milling wheat in an international tender which closed ⁠on Monday with Argentine wheat expected to be a ⁠major source of ‌supply, European traders said.

Purchases were initially reported at around $254 a metric ton cost and ⁠freight (c&f) included, they said. There was market talk the lowest price was $253 a ton c&f.

Initial estimates of the purchase volume were mostly ⁠around 600,000 tons although some ​estimates went as high as 720,000 tons.

Algeria’s purchases are optional origin ‍but traders suspected the wheat could be sourced from Argentina, ​which is currently offering very low prices from its large new crop.

"The prices are so low that even Black Sea wheat was out of the running," one trader said.

The wheat was sought for shipment in two periods from the main supply regions, including Europe: March 1-15 and March 16-31.

If sourced from ⁠South America or Australia, ‌shipment is one month earlier. Reports reflect assessments from traders and further estimates of prices and volumes are ‌still ⁠possible later.

(Reporting by Michael Hogan in Hamburg and Gus ⁠Trompiz in Paris, editing by Tomasz Janowski)