HAMBURG/PARIS - Algeria’s state grains agency OAIC has purchased about 500,000 tonnes of optional-origin milling wheat in an international tender that closed on Wednesday, European traders said on Thursday.

Trade estimates were between 500,000 and 550,000 tonnes, above initial estimates early Wednesday evening. One estimate was 580,000 tonnes.

Estimates of the purchase price were still around $279 a tonne c&f, traders said. More detailed assessments of prices and tonnage bought are still possible later.

The purchase was expected to be mainly sourced from the European Union, including France, Germany and Poland.

European wheat rose sharply in late trading on Wednesday as lower than expected official forecasts of U.S. corn and soybean planting sent Chicago grain futures soaring.  

The sudden price rises in Europe and the United States occurred in the final stages of price negotiations in the Algerian tender.

The wheat was sought for shipment in two periods - May 1-15 and May 16-31 - from the main supply regions including Europe. If sourced from South America, shipment is April 1-15 and April 16-30.

Algeria does not release results of its tenders and reports are based on trade estimates. In its previous wheat tender reported on March 10, the OAIC purchased between 450,000 and 510,000 tonnes at about $323 a tonne c&f. 

(Reporting by Michael Hogan in Hamburg and Gus Trompiz in Paris Editing by Marguerita Choy and David Goodman ) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))