The Iraqi Grain Board has bought one million tons of hard wheat, 800,000 tons of which will be supplied by US firm Cargill. The remaining 200,000 tons were purchased from an undisclosed US supplier.

Reports appearing in local press today (5 January 2006), citing a senior official with the Grain Board, claim that the wheat will be supplied on a free on board basis with deliveries beginning later this month.

The purchase represents an increase in the amount of wheat bought from US sources, as in September 2005 the US supplied Iraq with 850,000 tons of wheat while Australia provided 650,000 tons of wheat.

The official also revealed that Iraq has agreed to buy 500,000 tons of rice from the US and Thailand under the FOB system, also for delivery commencing this month.