The tender from Iraq's state grains buyer will close on May 7 and offers must remain valid until May 11, they said.

Iraq has held several wheat tenders in recent months without announcing a purchase.

The government announced this month it was negotiating direct contracts for the import of rice and wheat after the failure of recent tenders.

"There is no doubt that Iraq has again issued a full international tender for wheat despite the statements that it would in future undertake purchases through direct private negotiations," a German trader said.

Major global wheat and rice buyer Iraq had told suppliers earlier this year it would pay for its grains in instalments.

Like other oil exporters, Iraq has suffered a serious loss of income as oil prices remained low in recent years.

"In my view international tenders are the cheapest option enabling a big importer to seek out the lowest sales offers," the trader said. "I think Iraq would be just giving itself a higher import bill at a time of tight finances if it undertakes direct purchases."

Iraq's last rice purchase last week was also undertaken via a normal tender despite the statements about private negotiations, traders said.

"I think grain export companies were not willing to accept delayed or instalment payments in directly negotiated deals and if you are going to make normal payment you may as well seek offers worldwide in a global tender," another trader said.