Official grain agency: Saudi Arabia buys 690,000 tons of hard wheat

The wheat, with 12.5 percent protein content, is for shipment during April and May. (File photo: AFP)

Saudi Arabia bought 690,000 tons of hard wheat via a tender, the country’s main state grain agency Grain Silos and Flour Mills Organization (GSFMO) said on Monday.

The wheat, with 12.5 percent protein content, is for shipment during April and May, GSFMO said in a statement.

The accepted origins are the European Union, North America, South America and Australia at the option of sellers, the GSFMO said.

“I think there will be expectations that some of the purchase will be sourced in Europe, perhaps in Germany or Poland,” one trader said.

Saudi Arabia has become a major importer of hard and soft wheat since abandoning plans for self-sufficiency in wheat in 2008 as farming in the desert drained away precious water supplies.

The country aims to steadily reduce agriculture and plans to be completely reliant on imports by 2016 to save water.

GFSMO said its latest deal comprised these purchases in dollars a ton with the shipment period in 2015 in brackets:

Shipment to Jeddah Port:
- 60,000 tons hard wheat from Concordia at $252.22 C&F (Apr. 1-10)
- 60,000 tons hard wheat from Concordia at $252.22 C&F (Apr.10-20)
- 60,000 tons hard wheat from Louis Dreyfus at $250.64 C&F (Apr. 20-30)
- 60,000 tons hard wheat from Louis Dreyfus at $254.64 C&F (May 1-10)
- 55,000 tons hard wheat from ADM at $254.91 C&F (May 10-20)
- 55,000 tons hard wheat from ADM at $254.91 C&F (May 20-30)

Shipment to Dammam Port:
- 55,000 tons hard wheat from ADM at $255.96 C&F (Apr. 1-10)
- 60,000 tons hard wheat from Louis Dreyfus at $255.14 C&F (Apr. 10-20)
- 55,000 tons hard wheat from ADM at $256.96 C&F (Apr. 20-30)
- 60,000 tons hard wheat from Concordia at $257.95 C&F (May 1-10)
- 55,000 tons hard wheat from ADM at $256.45 C&F (May 10-20)
- 55,000 tons hard wheat from ADM at $258.71 C&F (May 20-30)

 

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