October 5, 2004

Iraq Buys "Large Quantity" Of Australian Wheat
 
Iraq has signed a contract with Australia's monopoly wheat exporter AWB Ltd. to purchase a "large quantity" of hard wheat, Iraq's Trade Minister Mohammed al-Jibouri said Monday.
 
Al-Jibouri said another contract to buy hard wheat from the U.S. hasn't been signed yet.
 
"We have signed a contract with Australia to buy a large quantity of wheat," Al-Jibouri told Dow Jones Newswires.
 
"Perhaps we will sign another contract with another company but we haven't agreed on that contract yet," Al-Jibouri said.
 
"I don't want to enter on details, this is Australian wheat and that is American. The price was suitable and the quality was good and we have signed the contract with Australia."
 
Last week a senior official from the ministry said Iraq would sign deals to buy 1 million metric tons of hard wheat from the AWB and 500,000 tons from U.S. supplier Cargill.
 
Al-Jibouri didn't mention the price reached with the AWB but last week the official said the price reached with two suppliers was $238/ton cost and freight.
 
The minister said the amount of wheat purchased from Australia would cover the country's need for three to four months.
 
Iraq needs to buy 3 million tons of wheat in 2005 because of a poor 2004 harvest. Iraq produces 750,000 to 1 million tons of wheat a year.