Saudi Arabia buys about 920,000 metric tons of wheat in tender

PHOTO

HAMBURG - Saudi Arabia's main state wheat buying agency, the General Food Security Authority (GFSA), has purchased about 920,000 metric tons of wheat in an international tender, it said on Monday.

This was above the 595,000 tons from sought in the tender, it said.

The wheat was bought at an average price of $276.37 a ton cost and freight (c&f), the agency said, confirming previous reports from traders.

The purchase involved hard wheat with 12.5% protein content.

Origins offered were the European Union, Black Sea region, North America, South America and Australia, with the sellers having the option of selecting the origin supplied, GFSA governor Ahmad Al-Fares said in a statement.

Traders said grain from the Black Sea region was expected to be used to supply the main part of the purchase, including a possible 300,000 tons from Romania and some from Bulgaria, while Russia could also be an origin for at least two consignments.

At least two consignments were expected to be sourced from Australia.

“There could be quite a number of origins involved in the purchase,” one European trader said.

In its last reported wheat tender on December 16, the GFSA purchased about 804,000 tons.

The GFSA said the following purchases were all made in dollars per ton c&f, showing the seller and port and arrival period in Saudi Arabia:

Jeddah port

- 60,000 tons from Solaris at $276.11 C&F (May 1-15)

- 65,000 tons from Olam at $279.00 C&F (May 15-31)

- 60,000 tons from Cerealcom at $275.00 C&F (June 15-30)

- 65,000 tons from Olam at $279.25 C&F (June 15-30)

- 65,000 tons from Olam at $276.25 C&F (1-15 July)

Yanbu port:

- 60,000 tons from Ameropa at $279.44 C&F (May 1-15)