Algeria bought about 390,000 to 400,000 tonnes wheat on Tuesday - trade

Estimates of purchase price were around $353 a tonne c&f for a couple of shipments

  
A scarecrow is seen at a wheat field in Tipaza, west of Algiers, Algeria June 3, 2015.

A scarecrow is seen at a wheat field in Tipaza, west of Algiers, Algeria June 3, 2015.

REUTERS/Ramzi Boudina

HAMBURG/PARIS - Algeria's state grains agency OAIC purchased around 390,000 to 400,000 tonnes of optional-origin milling wheat in an international tender which closed on Tuesday, European traders said in assessments on Wednesday.

Estimates of volumes bought on Tuesday evening started around 270,000 tonnes but trader assessments on Wednesday were generally higher at between 390,000 to 400,000 tonnes. More details are still possible later.

Estimates of purchase price were around $353 a tonne c&f for a couple of shipments, with the rest at $355 and $356.60 a tonne c&f similar to Tuesday’s levels, traders said. More detailed assessments of prices are also possible later.

The wheat was sought for shipment in two periods from the main supply regions including Europe: Oct. 1-15 and Oct. 16-31. If from South America or Australia, shipment is between Sept. 1-15 and Sept. 16-30.

Algeria does not release results of its tenders and reports are based on trade estimates.

"There seemed to be a lack of available qualities of wheat to offer in the after the harvest-time rain damage in France and some other countries," one trader said.

As in Algeria's last tender on Aug. 17, traders said OAIC on Tuesday informally indicated it would accept wheat with test weights - a key milling quality criteria - of 76 with conditions, compared with its usual minimum of 77-78.  

That was again seen as a step to enable more offers of wheat from France, usually Algeria's main supplier, after summer rain led to weak test weights in the harvest.  

"A couple of shipments could be sourced from Poland, one or two shipments from Germany but a good volume could come from France after OAIC informally compromised on the test weight quality criteria," another trader said.

(Reporting by Michael Hogan in Hamburg and Sybille de La Hamaide in Paris, editing by Louise Heavens) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))


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