October 27, 2005

 

Iraq to buy one million tonnes of US wheat

 

 

Iraq would buy one million tonnes of wheat from US firms, Columbia Grains and Louis Dreyfus, at $US190/tonne, an Iraqi trade official said.

 

He added that shipments were expected to start arriving in early December.

 

Iraq's trade ministry decided to turn to US wheat, after traditional supplier Australia declined to make offers on a free on board basis. The official said that FOB terms saved the country a lot of money.

 

Iraq's government said it would buy one million tonnes of wheat every 40 days until early next year to fill strategic reserves.

 

However, the official did not rule out awarding a future tender to the Australians, if Australia agreed on FOB terms.

 

Iraq imported about three million tonnes of wheat annually to feed a population of 27 million people.