UPDATE 1-Algerian wheat buy in tender seen at 630,000 T, traders say

(Changes dateline, adds details from paragraph four)

HAMBURG/PARIS, Dec 26 (Reuters) – Algeria’s state grains agency OAIC is believed to have purchased around 630,000 metric tons of milling wheat in an international tender, which closed on Tuesday, European traders said on Thursday.

Traders had reported the purchase on Tuesday but had not given estimates of tonnes bought. Some trader estimates on Thursday put the purchase over 630,000 tons.

Prices reported on Thursday were again around $257 to $258 a ton cost and freight (c&f) included, they said. This was the same as reported on Tuesday evening.

In its last full-scale milling wheat tender in late October, OAIC was estimated by traders to have booked around 600,000 tons for shipment in December at the higher price of $263 a ton c&f.

Traders suspected some of the wheat purchased this week would be sourced from the Black Sea region, including Romania, Bulgaria and Ukraine, although technically the grain can be sourced from optional origins.

Trader reports said around eight companies made sales, including one French trading house.

Algeria, one of the leading markets for EU wheat exports, for many years sourced most of its imported wheat from France. But Russian and other Black Sea region exporters have been expanding in the market, a trend amplified by the apparent sidelining of French supplies in OAIC’s tenders since early October amid diplomatic tensions between Algiers and Paris.

OAIC, which does not release details of its tenders, has said it treats all suppliers equally.

Reports reflect assessments from traders and further estimates of prices and volumes are possible later.

The wheat was sought for shipment in four periods from the main supply regions, including Europe: Feb. 1-15, Feb. 16-28, March 1-15 and March 16-31. If sourced from South America or Australia, shipment is one month earlier. (Reporting by Michael Hogan in Hamburg and Sybille de La Hamaide in Paris; Editing by Shilpi Majumdar)

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