(Repeats story published late on Thursday with no change to
text)
(Adds details)
PARIS, Feb 9 (Reuters) - Algeria bought a surprisingly
high volume of milling wheat on Thursday, accelerating its
purchases at a time international tensions have led to a surge
in demand from countries such as Iran, European traders said.
Algeria's state grains agency OAIC bought at least 700,000
tonnes, and possibly up to one million tonnes, of
optional-origin milling wheat at between $300 and $303 per
tonne, cost and freight included, the traders said.
Algeria has not made such big purchase since the 800,000
tonnes it bought in late January 2011, during the Arab Spring.
"Algeria may be aware that countries such as Iran and Syria
have big needs, prompting it to boost its purchases," one
exporter said.
Iran bought at least 600,000 tonnes of wheat recently. To
close its grain purchases, the Islamic Republic is bartering
gold and oil and/or paying in foreign currency as it steps up
efforts to beat sanctions that had started to choke imports of
food staples.
Syria, where revolts have turned into a civil war, has
issued a new international tender to purchase 100,000 tonnes of
soft milling wheat after failing to purchase grains in its two
previous tenders, traders said on Thursday.
"Algeria has more needs. In this context they are right to
hurry," another trader said, adding the price paid was
competitive because of the volume purchased.
Shipment was for April and May. Algeria, which has needs
estimated at around 500,000 tonnes a month, had originally
tendered for 100,000 tonnes for shipment in April.
PEST DAMAGE
The wheat was likely to come from the European Union, France
in particular, after Algiers recently rejected cargoes of South
American grain for quality reasons, they said.
"Several shipments from Argentine and Paraguayan have been
refused because of pest damage," another exporter said. "This
forced Algiers to come back to French origins."
According to Reuters calculation, around 95,000 tonnes of
wheat have been loaded in France to Algeria in January, in sales
that were initially attributed to South American origins.
In February, data showed that 25,000 tonnes have already
been loaded and one trader said two other cargoes of 25,000
tonnes each were set to load this month.
Traders also mentioned fears of a rise in prices on the
world market either because of damage due to a cold snap hitting
western and eastern Europe but also an ongoing threat of seeing
Russia and Ukraine restrict their grain exports.
Similar moves had led to a surge in prices on the world
wheat market last season.
(Writing by Sybille de La Hamaide; editing by James Jukwey)
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