Iraq buys 350,000 T wheat from Australia, Russia, Canada

Iraq’s state grains board has purchased a total 350,000 tons of wheat from Australia, Russia and Canada in a tender for a nominal 50,000 tons which closed this week, European traders said on Wednesday.

Of the total, 200,000 tons of Australian wheat was purchased from Glencore at $404.89 cif, traders said.

Glencore also sold 50,000 tons of Russian wheat at $399 a tonne cif.

Some 100,000 tons of Canadian wheat were sold by Viterra at $409.89 a ton cif, traders said.

Lower offers of Romanian wheat in the tender were rejected, traders said.

“Romanian wheat possibly looked too much of a fringe origin and Russian wheat preferred while it is almost sold out but not quite,” one trader said. “There are still some final Russian supplies being offered from port warehouses, I think this sale should not change the perceptions of tight Russian supplies.”

Russia has been pulling out of grain export markets after a poor harvest this summer.

“Offers of U.S. hard red winter in the Iraq tender were too high to be competitive, but U.S. soft red winter is looking attractive in other export markets with different specifications such as Egypt," another trader said.

“Australian and Canadian wheat were offered aggressively to Iraq both in terms of prices and volumes.”

Two offers each of 50,000 tons of U.S.-origin wheat were made in the tender, one at $444.04 a ton c&f free out and the other at $454 a ton cif liner out, traders said.

Free out and liner out terms have different provisions for ship unloading.

Traders said offers for a total 400,000 tons of Australian wheat were made to Iraq along with offers of 300,000 tons of Canadian wheat.