WASHINGTON, Dec 15: Two ships carrying US corn and poultry meat were scheduled to arrive in Havana on Sunday, carrying out the first sales of US food to Cuba since it became a Communist nation, trade and shipping officials said on Friday.

Cuba bought $30 million of US wheat, corn, soybeans, rice, chicken and other items last month to help recover from Hurricane Michelle.

A news conference was held in New Orleans on Friday to salute the sailing of the M.V. Mazatlan, loaded with 24,000 tonnes of corn worth $2 million. The M.V. Express, carrying 500 tons of frozen chicken leg quarters, left Gulfport, Mississippi, on Friday as well.

Both ships were expected to reach Havana at mid-day Sunday.

The sales were the first result of a year-old law that exempted food and medicine sale from U.S. trade sanctions that were imposed in 1959. However, no private U.S. or government financing of sales was allowed.

US agribusinesses said they hoped for further sales to the nearby neighbor, 100 miles (160 kms) south of Florida. Some analysts were skeptical of the immediate potential in cash-short Cuba.

The prohibition on private US financing of food sales would be removed under legislation pending in the Senate. Sen. Bob Smith, New Hampshire Republican, has proposed an amendment to allow private financing only when Cuba is removed from the State Department lists of nations sponsoring terrorism.

That’s pretty heavy company Cuba is in with, Smith said on Thursday. The other nations on the list were Libya, Iran, Iraq, North Korea, Sudan and Syria.

North Dakota Democrat Byron Dorgan said Smith was trying to extend 40 years of a policy that doesn’t work. He said economic engagement would encourage democracy in Cuba and benefit US farmers.

CHICAGO: Chicago Board of Trade soft red winter wheat futures closed higher on Friday on technical fund buying tied to short covering, traders said.

CBOT wheat closed 1/2 to 5 cents per bushel higher, with March up 4-1/4 at $2.86-3/4 per bushel. December expired Friday at 12:01 and was up 1 cent at $2.75 per bushel.

Traders said the fall in the market late Thursday left it poised for a short-covering rally with positioning noted before the weekend. Traders said there was no notable fundamental news to trigger the rally.

The market sagged at the open, on follow-through technical fund selling with E.D. and F. Man International the chief seller of 500 March. FIMAT Futures sold 200 March and Merrill Lynch Futures sold 100 March.

But in subsequent dealings, funds staged a rally with buy-stops hit at $2.83 in the March and buying wavered just above second resistance at $2.86.

Fund buying totaled at least 2,200 lots. Rand Financial was the chief purchaser of 1,000 March, Refco Inc. bought 500 March and sold 100 March, Salomon Smith Barney bought 300 March and bought 200 July.—Reuters