May 19, 2004

 

 

Iraq Buys More Of Australia's Wheat
 

Australia has sold another 100,000 tonnes of wheat to Iraq. It is the first contract offered directly by the Iraqi Grains Board in more than a decade.

 

In recent years, all wheat sales to Iraq have been through the United Nations' oil-for-food program or via the World Food Program.

 

Wheat marketer AWB (International) Limited was successful in winning half of a 200,000-tonne tender for supply of grain to the IGB in July and August.

 

The other half of the tender is believed to have been won by the US, although there has been no confirmation of this within the market.

 

AWB pool manager David Johnson said the prices offered by the US suggested it would locate the grain from other suppliers, probably a European country.

 

Mr Johnson said shipping costs probably precluded the export of the wheat directly from the US.

 

AWB has now won the right to ship more than 500,000 tonnes of wheat to Iraq since sales resumed after the end of the Gulf War.

 

It recently won a tender to ship 460,000 tonnes of wheat out of a 630,000-tonne contract.

Mr Johnson said shipment of that grain has begun.

 

It was expected to be completed in June.

 

Australia has annually supplied up to 2.5 million tonnes of wheat to Iraq in past years under the UN oil-for-food program.

 

The US has been excluded from the market since the first Gulf War in 1990 and has only just begun re-tendering for grain business this year.