HAMBURG/PARIS: Algeria's state grains agency OAIC is believed to have purchased about 390,000 tonnes of optional-origin milling wheat in an international tender which closed on Wednesday, European traders said in assessments on Thursday.

Initial estimates late on Wednesday put the purchase at between 330,000 tonnes to 390,000 tonnes.

It was believed to have been mostly purchased at between $312.50 and $314.50 a tonne c&f, traders said, also in line with initial assessments on Wednesday.

At least six trading houses are believed to have made sales.

"I think a large part, perhaps around half, of the purchase could be sourced in France but also from the north EU and even South America," one trader said.

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

The wheat was sought for shipment from the main supply countries between Feb. 14 to Feb. 28. If sourced from South America or Australia, shipment is between Feb. 1 and Feb. 15, they said.

In its last tender reported on Dec. 31, Algeria purchased about 300,000 tonnes of milling wheat at around $292 a tonne c&f but prices have since risen sharply after Russia announced plans for taxes to reduce its wheat exports.

The December deal had been regarded as relatively small and a top-up purchase by Algeria had been expected by traders despite current high prices.