HAMBURG/PARIS- Algeria’s state grains agency OAIC purchased about 300,000 tonnes of optional-origin milling wheat in an international tender, European traders said on Thursday, confirming initial estimates on Wednesday night.

It was largely purchased at around $292 a tonne c&f, traders said, adding that three trading houses made sales in the tender, which closed on Wednesday. 

“There is hope that part of the purchase will be sourced in the EU, but the rise in Euronext prices in Paris has brought Argentine wheat back as a possible option,” one trader said.

“It is difficult to guess the likely origin that will be selected.”

European wheat futures in Paris hit two-year highs on Wednesday. 

"The rise in Paris reduced purchase interest in the tender by Algeria late on Wednesday," another trader said.

The wheat was sought for shipment in two periods from the main supply countries, Feb. 1-15 and Feb. 16-28. If sourced from South America, shipment is for Jan. 1-15 and Jan. 16-31.

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

In its last reported tender on Nov. 13, the OAIC is believed to have purchased about 600,000 tonnes of optional-origin milling wheat at $274.50 a tonne c&f, with the EU seen as the main supplier. 

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