HAMBURG: Wheat from Australia was offered at the lowest price of $306 a tonne c&f in Iraq's tender to purchase a minimum 50,000 tonnes of hard milling wheat which closed on Monday, European traders said.
No purchase has yet been made in the tender from Iraq's trade ministry, which sought US, Canadian or Australian origin only. Offers are still being considered and must remain valid for consideration up to March 25, traders said.
The lowest offer was made for 50,000 tonnes. It was followed by other offers of Australian wheat including at $309.95, $313.50, $318 and $340.48 per tonne c&f all also for 50,000 tonnes.
Lowest offer for wheat from the United States was $332.17 a tonne c&f followed by two other offers of $337.00 and $364.05 a tonne c&f, both for 50,000 tonnes.
No offers were reported for Canadian wheat. Four trading companies participated in the tender, a modest number compared to previous years.
"I think the offers underline the fact that US wheat prices need to fall further to gain more competitiveness in export markets, with competition from Australia looking very tough," one European trader said.
US wheat futures surged to 7-1/2 month highs in early March on concern dryness could damage crops in US Plains grain belts, but have since fallen back on expectations of rain in the region.
Volumes in Iraq's wheat tenders are nominal and the country frequently buys more than it tenders for.
Iraq is expected to require wheat imports in the coming months despite an improvement in its harvest, Iraq's new grain board chief said on March 13.
The trade ministry will continue with its recent combination of purchasing wheat though international tenders and direct deals, he said.
Iraq's trade ministry has struggled to import grain in the past year after introducing new payment and quality terms that kept traders away from its international tenders.
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