The company's managing director, Andrew Lindberg, said the wheat was the first destined to go into Iraq since the start of the war.

"AWB will deliver and discharge the wheat, and after it is milled at port, the World Food Program will distribute the bagged flour to the people with immediate needs," he said.

The shipment had been held up for weeks by the impending US-led invasion of Iraq and then by underwater mines and other security fears at the Iraqi port of Umm Qasr.

Lindberg said the arrival of the Australian wheat would both ease the suffering of the Iraqi population and reinforce Australia's role in supplying Iraq amid concerns US producers could try to control the market after the war.

"We have been able to secure an outcome which brings food to the Iraqi people at their moment of need while protecting the interests of Australian wheatgrowers," he said.

A second ship carrying another 50,000 tonnes of Australian wheat remained anchored in waters near Oman on Wednesday but would soon proceed to another port for unloading, Lindberg said.

Australia has been providing wheat to Iraq under a UN-monitored oil for food program. The latest shipments were also being paid for by the UN.

SPACE.WIRE