HAMBURG/PARIS: Algeria’s state grains agency OAIC has started buying optional-origin milling wheat in an international tender which closed on Wednesday with initial purchases reported around $466 a tonne c&f, European traders said in initial assessments.

Traders expected negotiations to continue on Thursday. Estimates of the initial purchase on Wednesday were around the relatively small volume of 180,000 tonnes to 300,000 tonnes, they said. More detailed assessments of prices and tonnage bought are expected later.

The wheat was sought for shipment in two periods from the main supply regions including Europe: July 1-15 and July 16-31.

If sourced from South America or Australia, shipment is one month earlier. Algeria does not release results of its tenders and reports are based on trade estimates. Algeria is a vital customer for wheat from the European Union, especially France.