Iraq's trade ministry purchased a total of 100,000 tonnes of wheat to be sourced from the United States and Australia in an international tender which closed this week, traders in Europe and the Middle East said on Thursday. Some 50,000 tonnes of US-origin wheat was sold by trading house Ameropa at $337.86 a tonne cost, insurance and freight (CIF), they said.
Another 50,000 tonnes of Australian wheat was sold by trading house CBH at $353.27 a tonne CIF. Canadian wheat had been offered at the lowest price of $337 a tonne CIF in the tender by trading house Hanalico. There was no immediate explanation about why the lowest offer was not accepted. One European trader said rejection of the lowest offer happens regularly in Iraqi tenders. "It is difficult to understand the offer evaluation process," he said.
The tender had closed on Sept. 23 with offers having to remain valid until Thursday, September. 27. Iraq's trade ministry also said on Wednesday it had made a separate purchase of 100,000 tonnes of wheat and 90,000 tonnes of rice in direct deals, outside of the international tendering process. The trade ministry imports millions of tonnes of wheat and rice annually as millions of Iraqis depend on the government's extensive subsidised food system. Water shortages are also hampering Iraqi wheat and rice farmers.