Iraq issues tender for 100,000T wheat

The Iraqi Grain Board issued a tender on Thursday to purchase least 100,000 tonnes of wheat from any origin, European traders said.

Shipment dates were not given. Bidding deadline was July 30 and offers must remain valid until August 2.

Volumes in Iraq's wheat tenders are nominal and the country often buys more than originally sought.

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

Iraq expects drought will cut its 2011 wheat harvest to 1.75 million tonnes, below previous forecasts of 2-2.5 million tonnes and lower than the 1.8 million tonnes produced last year, Hassan Ibrahim, Iraq's grain board chief told Reuters on July 18.

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.

"Iraq may well benefit from the strong return of Russian and Ukrainian wheat to the export sector and I would tip Black Sea to win this new tender," one trader said.

Egypt and Jordan are among Middle Eastern buyers which have made heavy purchases of Black Sea wheat in recent weeks. On July 1, a better crop outlook this year led Russia to end a grain export ban imposed after drought damaged the 2010 harvest.