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Saudi Arabia’s SAGO agrees to buy 562,000 tonnes of wheat

Saudi Arabia’s state grain organisation (SAGO) has agreed to buy 562,000 tonnes of wheat for delivery between August and September at $299.55 average price per tonne, it said on Monday.

The tender for up to 720,000 tonnes of hard wheat with 12.5 percent protein content had closed on Friday.

Origins offered were the European Union, Black Sea region, North America, 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 following purchases were made in dollars per tonne c&f with 2021 arrival period in brackets, SAGO said.

Jeddah port

• 65,000 tonnes from Agrorodeo at $300.58 C&F (Aug. 10-20)

• 60,000 tonnes from Holbud Limited at $296.97 C&F (Sept. 1-10)

• 60,000 tonnes from Olam at $292.50 C&F (Sept. 20-30)

• 60,000 tonnes from Holbud Limited at $295.00 C&F (Sept. 20-30)

Yanbu port

• 60,000 tonnes from Solaris at $299.20 C&F (Aug. 20 – 30)

• 65,000 tonnes from ADM Hellas at $293.14 C&F (Sept. 10-20)

• 65,000 tonnes wheat from Cargill at $297.54 C&F (Sept. 10 – 20)

Dammam

• 65,000 tonnes from Agrorodeo at $310.71 C&F (Aug. 1-10)

• 62,000 tonnes from Louis Dreyfus at $309.65 C&F (Sept. 10 – 20)

Some Russian wheat was offered in the tender despite uncertainty about Russia’s grain export taxes, traders said. Some of the purchase was also expected to be sourced from Baltic states, including Lithuania.

In its previous hard wheat tender in early April, SAGO bought 295,000 tonnes at the lowest price of $268.89 a tonne c&f.
Source: Reuters (Reporting by Maher Chmaytelli in Dubai and Michael Hogan in Hamburg Editing by David Goodman)

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