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Algeria buys milling wheat at tender, traders claim

European traders reported that Algeria's state grain agency OAIC began buying milling wheat after a Tuesday international tender closed.

They said that the initial cost of a metric tonne, including freight and costs (c&f), was around $244.50.

Initial, the exact size of the order in terms of tonnage was not clear. Traders added that negotiations are continuing and additional purchases could be made.

The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later.

Algeria usually buys much more than the nominal volume. Wheat can be supplied from any approved origin.

Wheat is shipped in two phases from the main regions of supply, including Europe: 10-20 August and 21-31 August. The shipment date is one month earlier if the wheat comes from South America or Australia.

Algeria is an important customer of wheat imported from the European Union and France in particular. However, Russian exporters as well as those from other Black Sea regions have seen a strong expansion on the Algerian market. Reporting by Michael Hogan from Hamburg and Gus Trompiz from Paris

(source: Reuters)