HAMBURG/PARIS - Algeria's state grains agency OAIC has purchased milling wheat in an international tender which closed on Tuesday, European traders said on Wednesday.

Initial unconfirmed trade estimates put the purchase at around 600,000 tonnes, but more details are expected in coming days.

First assessments put prices paid at about $218 and $218.50 a tonne c&f. More detailed estimates are also expected later.

"The prices look fairly aggressive. The French trade didn't have much business in their books for the new crop, so it was an opportunity not to be missed," one trader said.

French wheat was likely to be used to cover most of the volume but some cargoes could come from the Baltic region for the first half of the August shipment period depending on the harvest progress, the trader added.

The wheat was sought for shipment in two periods from the main supply countries, July 16-31 and Aug. 1-15. If sourced from South America, shipment is between June 16-30 and July 1-15.

Algeria is a vital customer for wheat from the European Union, especially France. Algeria does not release the results of its purchase tenders and reports are based on assessments from traders.

Algeria had rejected offers and made no purchase in its previous wheat tender reported on April 3.

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