Iraq may have bought at least 100,000 tonnes of Australian wheat and was close to buying another 150,000 tonnes of Canadian and German hard wheat, Middle East trade sources said on Thursday. The Australian wheat consignment of 100,000 tonnes was believed to have been bought from international supplier Glencore at around $240 per tonne FOB.
A similar quantity of Canadian wheat was about to be awarded to an Iraqi firm at around $236 per tonne FOB, the sources familiar with the tender told Reuters. Another 50,000 tonnes of German wheat was about to be purchased from an undisclosed major international supplier at around $222 per tonne FOB, the sources said.
Trade sources also said some of these awards may not come through as they are awaiting approval by the cabinet that normally approves recommendations of the grain board. Some of these awards may also be subject to delays by the grain board confirming international suppliers' bids as had recently happened with a 100,000 tonnes of US wheat deal on April 7.
The deal never went through when the international supplier who won the award declined to accept after weeks of delay by the state buyer in confirming the offer. The sources told Reuters the deals were a result of a tender for a nominal 50,000 tonnes that closed on April 19. Volumes in Iraq's wheat and rice tenders are viewed as nominal and the country regularly buys more than originally sought.
The prices for the latest deals are slightly higher than Iraq's last major purchase in international markets approved by the cabinet on April 7.The government said at the time they had purchased a total of 250,000 tonnes of wheat at prices ranging from $208 per tonne FOB for Russian wheat to $234.8 per tonne FOB for Canadian wheat. It also included 100,000 tonnes of US wheat bought at $238.5 a tonne FOB.