EU wheat prices underpinned by Algerian purchase

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Algeria’s state grains agency OAIC bought around 570,000 tonnes of optional-origin milling wheat at prices mainly around $198 to $198.50 a tonne, cost and freight included, in a tender that closed on Thursday, Reuters reported.

European wheat prices were little changed on Friday but the market was underpinned by news of a purchase by major importer Algeria which was expected to include French supplies, the source explained.

By 1617 GMT May milling wheat on Paris-based Euronext, was down 0.15 percent at 163.50 euros a tonne, holding above its contract low of 162.75 euros which was set a week ago.

New crop September was up 0.15 percent at 168.25 euros a tonne.

Traders said they thought the wheat was likely to be mainly sourced from the European Union, including some from France. One said some U.S. hard red winter wheat could not be ruled out from the purchase.

“Algeria is good news but it’s for June delivery, which means they are pretty much covered for the season, and there is not much going on the internal market,” a trader said.

“On the new crop we’ll see if demand picks up or if there is a weather hiccup but otherwise the market remains heavy.”

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