Iraq buys 50,000 T Russian wheat in tender

Iraq's state grain board has purchased 50,000 tonnes of Russian wheat in its latest tender for at least 100,000 tonnes, European traders said on Friday.

Price was said to be $265 a tonne fob.

Iraq had also been expected to buy about 200,000 tonnes of US wheat in the tender but no purchase had yet been made, despite repeated requests by Iraq to extend the validity of price offers, traders said.

"I think the US side of the tender has now been cancelled although it is not totally clear," one trader said.

Deadline in the tender was July 30 and originally offers had to remain valid until August 2.

The deal continues a series of heavy sales by Russia since the country ended its grain export ban on July 1.

Russian wheat was also bought at the lowest price of $261.94 a tonne fob in a tender from Egypt on Thursday.

Traders had expected Iraq to enter the market as a disappointing harvest is likely to raise its import requirement.

Iraq said drought has cut its 2011 wheat harvest to 1.73 million tonnes, below previous forecasts of 2-2.5m tonnes expectations and lower than 1.866m tonnes produced last year.

The previously good harvest outlook meant that Iraq had been absent from the international market in recent months.

In its last tender in April, it purchased 300,000 tonnes from the US and Australia.