UPDATE 1-Algeria buys 360,000 to 390,000 T wheat in tender, traders say

(Adds estimate of tonnage, Black Sea origin)

HAMBURG/PARIS, Oct 8 (Reuters) – Algeria’s state grains agency OAIC has purchased about 360,000 to 390,000 metric tons of milling wheat in an international tender that closed on Tuesday, European traders said.

Initial purchases were reported at about $262.50 a metric ton cost and freight (c&f) included, they said. Some put the lowest price at $262 a ton c&f.

The purchase was said to involve substantial Black Sea supplies, including Russian and Ukrainian wheat.

There was further market talk about diplomatic tension between Algeria and France affecting the tender, with traders expecting no French wheat to be supplied.

Initial trader reports gave six sellers, but no French trading houses were among them.

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

The wheat is sought for shipment in 2024 in two periods from the main supply regions including Europe: Nov. 1-15 and Nov. 16-30. If sourced from South America or Australia, shipment is one month earlier.

Algeria is a vital customer for wheat from the European Union, especially France, but Russian and other Black Sea region exporters have been expanding strongly in the Algerian market. (Reporting by Michael Hogan in Hamburg and Gus Trompiz in Paris Editing by David Goodman )

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