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Iraq buys 300,000 tonnes wheat from US and Canada

Iraq buys 300,000 tonnes wheat from US and Canada

DUBAI/HAMBURG: Iraq’s state grains board said on Thursday it had purchased a total of 300,000 tonnes of wheat to be sourced from the United States and Canada in directly-negotiated deals this week.

Some 200,000 U.S.-origin wheat was bought and 100,000 tonnes of wheat from Canada after negotiations without international tenders being issued, the board added.

The board gave no prices.

Traders had earlier assessed the total at 200,000 tonnes, with 100,000 tonnes purchased from the United States at around $334 a tonne CIF free out and 100,000 tonnes of Canadian wheat bought at around $324 a tonne CIF free out.

The U.S. wheat was to be delivered within 75 days from contract signing, the Canadian wheat in about 105 days.

Trading house Cargill was believed to be the seller of the U.S. wheat.

Iraq had started direct talks this week on wheat purchases without international tenders being issued.

The new head of the state Iraq grain board, under the trade ministry, said in March he would continue buying by both international tenders and directly negotiated deals.

In May 2017, Iraq’s cabinet had authorised the trade ministry to make direct purchases of wheat and rice to guarantee food security, after Iraq struggled to attract enough interest in its tenders from wheat traders. Iraq traditionally needs large volumes of wheat imports as its own crop is usually not enough to meet its own needs.

In November 2017, Iraq bought 500,000 tonnes of wheat and 90,000 tonnes of rice of U.S. origin in direct deals outside the tender process after signing a memorandum of understanding with the United States late last year for the supply of grains.

Talks about wheat and rice outside the tender process were also reported in March 2018 but no purchases were thought to have been made.

In its last reported public wheat tender on Aug. 2, Iraq bought 50,000 tonnes from Australia.

Iraq also bought about 60,000 tonnes of rice from the United States and Uruguay on Thursday in a public international tender.

Copyright Reuters, 2018

Source: Brecorder

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