HAMBURG/PARIS - Algeria's state grains agency OAIC has told traders it will relax specifications for bug (insect) damage in wheat effectively permitting Black Sea region wheat to be offered in tenders for higher protein grades, European traders said on Friday.

Traders said they have received changed tender terms in a document from OAIC saying the agency will increase its tolerance level for 12.5% protein wheat to 0.5% bug (insect) damage in purchase tenders.

Algeria’s bug damage standards for 11% protein wheat will remain at 0.1%, a level which Russian and other Black Sea supplies cannot usually meet.

(Reporting by Michael Hogan and Gus Trompiz; editing by Jason Neely) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))