|21 October, 2019

Saudi Arabia's SAGO buys 605,000 tonnes of wheat

The wheat was bought at an average price of $242.51 per tonne

Combines harvest wheat in a field near the village of Kruglolesskoye in Stavropol region, Russia June 26, 2018. Image used for illustrative purpose.

Combines harvest wheat in a field near the village of Kruglolesskoye in Stavropol region, Russia June 26, 2018. Image used for illustrative purpose.

REUTERS/Eduard Korniyenko

DUBAI - Saudi Arabia's state grain buyer SAGO said on Monday it had bought 605,000 tonnes of wheat in a tender.

The wheat was bought at an average price of $242.51 per tonne, SAGO said.

The tender for hard wheat with 12.5 percent protein content closed on Friday with the agency seeking arrival in Saudi Arabia in February and March 2020.

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

The purchase comprises six consignments to be shipped to the ports of Jeddah, three to Dammam and one to Jazan, he said.

These purchases in dollars a tonne c&f with shipment period in 2020 in brackets: Jeddah sea port: - 60,000 tonnes hard wheat from Holbud at $239.00 C&F (Feb. 1-10) - 60,000 tonnes hard wheat from Holbud at $239.48 C&F (Feb. 10-20) - 65,000 tonnes hard wheat from Cofco at $239.87 C&F (Feb. 20-29) - 60,000 tonnes hard wheat from Casillo at $239.49 C&F (Mar. 1-10) - 65,000 tonnes hard wheat from Cofco at $240.89 C&F (Mar. 10-20) - 60,000 tonnes hard wheat from Casillo at $240.58 C&F (Mar. 20-30) Dammam sea port (C&F):

- 60,000 tonnes hard wheat from Glencore at $248.44 C&F (Feb 1-10) - 60,000 tonnes hard wheat from Soufflet at $249.82 C&F (Feb. 20-29) - 60,000 tonnes hard wheat from Casillo at $244.89 C&F (Mar. 10-20)

Jizan sea port (C&F)

- 55,000 tonnes hard wheat from Holbud at $243.00 C&F (Mar. 20-30)

In its last reported wheat tender on Sept. 9, SAGO bought 780,000 tonnes at an average price of $217.79 per tonne.

Saudi Arabia said in August it would relax bug (insect) damage quality requirements in wheat tenders in a move which permitted wheat from the Black Sea region including Russia to be offered.

(Reporting by Asma Alsharif Maha El Dahan and Michael Hogan; Editing by Muralikumar Anantharaman and David Evans) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))

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