"They say they have now settled an inter-government loan of $20 million with the US which can be used to purchase US wheat," one European trader said.
"At current market levels this would translate into about 130,000 tonnes of US-origin hard wheat."
Details of the purchase were apparently still being worked out with the US Department of Agriculture and talks could take several weeks, traders said.
A tender for purchase of US-origin hard wheat was expected to be issued in August for shipment in September/October, depending on the outcome of talks.
In a separate move traders said earlier on Monday that Jordan had issued international tenders for the purchase of 50,000 tonnes of optional-origin hard wheat and 100,000 tonnes of optional-origin feed barley.
Any origin would be accepted although GSM-102 export credits were available for US wheat offered in the tender, traders said.