It is believed that Algeria's state grain agency OAIC has suspended negotiations on its international tender to buy milling wheat. The talks are to be resumed on Tuesday morning, European traders announced on Monday.
No purchase has yet been reported, dealers said.
The tender was closed on Monday, offers had to remain valid until Tuesday.
The tender aimed for a nominal 50,000 tonnes, but Algeria often buys considerably more in its tenders than the target volume.
“There seem to be several reasons for the delay, but one major problem is that the tender was not published until Saturday and the deadline for submitting price quotes on Monday was too early to get enough participation from Russian and Argentine exporters "Said a trader.
"In addition, the time was too short to procure the freight (sea shipping) to organize offers for European offers."
A copy of the tender that Reuters looked at said the insect damage limit was raised from 0.5% in previous tenders to a maximum of 1%.
A relaxation of the requirements for insect damage would support the bidding of Russian wheat and has long been requested by Russian wheat exporters.
Algeria is an important buyer of wheat from the European Union, especially from France.
A previous relaxation of the insect damage limit at the end of 2020 enabled Russian wheat to realistically enter Algeria's tenders. But Russian wheat is still struggling to break into the lucrative market, partly because of the generally higher pest levels than EU wheat.
No purchase has yet been reported, dealers said.
The tender was closed on Monday, offers had to remain valid until Tuesday.
The tender aimed for a nominal 50,000 tonnes, but Algeria often buys considerably more in its tenders than the target volume.
“There seem to be several reasons for the delay, but one major problem is that the tender was not published until Saturday and the deadline for submitting price quotes on Monday was too early to get enough participation from Russian and Argentine exporters "Said a trader.
"In addition, the time was too short to procure the freight (sea shipping) to organize offers for European offers."
A copy of the tender that Reuters looked at said the insect damage limit was raised from 0.5% in previous tenders to a maximum of 1%.
A relaxation of the requirements for insect damage would support the bidding of Russian wheat and has long been requested by Russian wheat exporters.
Algeria is an important buyer of wheat from the European Union, especially from France.
A previous relaxation of the insect damage limit at the end of 2020 enabled Russian wheat to realistically enter Algeria's tenders. But Russian wheat is still struggling to break into the lucrative market, partly because of the generally higher pest levels than EU wheat.
Source
Hansa Terminhandel GmbH