UPDATE 1-Iraq buys 350,000 T wheat from Australia, Russia, Canada -trade

Reuters Middle East

(Adds detail from paragraph six)

HAMBURG, Nov 21 (Reuters) - Iraq's state grains board has

purchased a total 350,000 tonnes of wheat from Australia, Russia

and Canada in a tender for a nominal 50,000 tonnes which closed

this week, European traders said on Wednesday.

Of the total, 200,000 tonnes of Australian wheat was

purchased from Glencore at $404.89 cif, traders said.

Glencore also sold 50,000 tonnes of Russian wheat at $399 a

tonne cif.

Some 100,000 tonnes of Canadian wheat were sold by Viterra

at $409.89 a tonne cif, traders said.

Lower offers of Romanian wheat in the tender were rejected,

traders said.

"Romanian wheat possibly looked too much of a fringe origin

and Russian wheat preferred while it is almost sold out but not

quite," one trader said. "There are still some final Russian

supplies being offered from port warehouses, I think this sale

should not change the perceptions of tight Russian supplies."

Russia has been pulling out of grain export markets after a

poor harvest this summer.

"Offers of U.S. hard red winter in the Iraq tender were too

high to be competitive, but U.S. soft red winter is looking

attractive in other export markets with different specifications

such as Egypt," another trader said.

"Australian and Canadian wheat were offered aggressively to

Iraq both in terms of prices and volumes."

Two offers each of 50,000 tonnes of U.S.-origin wheat were

made in the tender, one at $444.04 a tonne c&f free out and the

other at $454 a tonne cif liner out, traders said.

Free out and liner out terms have different provisions for

ship unloading.

Traders said offers for a total 400,000 tonnes of Australian

wheat were made to Iraq along with offers of 300,000 tonnes of

Canadian wheat.

(Reporting by Michael Hogan; editing by Keiron Henderson)

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