04/07/05 Update on Iraqi ag

04/07/05 Update on Iraqi ag

Farm and Ranch April 7, 2005 The Australian Wheat Board has denied reports that Iraq has suspended a contract to purchase one-million metric tons of Australian wheat. There had been press reports stating the Iraqi Trade Minister had suspended wheat purchases from Australia after reading other press accounts of statements made by an Australian Wheat Board official. Those reports were of statements made by AWB senior manager Charles Stott to a committee of the Australian Parliament in which Stott is quoted as saying he didn't want his Iraqi customers to know that we extract very good premiums from them vis-a-vis our next best alternative market. Iraq's Trade Ministry did begin an investigation into claims of inflated prices. Wheat Board officials have said the price of wheat sold to Iraq reflects the risk of doing business there and the quality of the wheat. Washington Congressman Doc Hastings visited Iraq over the congressional spring break. He says trade in specific commodities was not discussed as Iraq is still organizing its new government, but given their extensive system of irrigation canals Hastings believes Iraq has a great production potential. Hastings: "Now I don't know if that will necessarily affect our markets positively or not, but I would speculate that if the Iraqi government goes through this process of standing up a government and having a democratic society I think they will be one that will be very much open to trade issues that will be beneficial to us in the long run." I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.
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