Saudi Arabia buys 907,000T of hard wheat to bolster strategic stocks
The purchase involved hard wheat with 12.5% protein content.
SAUDI ARABIA – Saudi Arabia’s General Food Security Authority (GFSA) has purchased an estimated 907,000 metric tons of hard wheat in an international tender, significantly exceeding the up to 595,000 tons originally sought when the tender closed on Friday, January 16, according to traders.
Saudi Arabia remains one of the world’s largest wheat importers, sourcing grain primarily for its flour milling and food processing industries after phasing out domestic wheat production to conserve water.
The wheat, specified at 12.5% protein, was bought on a cost and freight (C&F) basis, with prices ranging from US$258.50 to US$264.84 per ton, and deliveries scheduled between April and May to multiple Saudi ports.
The larger-than-expected purchase underscores Saudi Arabia’s continued focus on strengthening food security and maintaining ample strategic wheat reserves amid ongoing volatility in global grain markets, logistics uncertainties, and shifting export dynamics from key supplying regions.
According to GFSA governor Ahmad Al-Fares, the tender allowed sellers to supply wheat from a wide range of origins, including the European Union, Black Sea region, North America, South America, and Australia, with exporters retaining the flexibility to select the final origin.
This optional-origin structure remains a hallmark of Saudi wheat tenders, helping the authority attract competitive pricing while ensuring supply reliability.
The wheat purchases were distributed across four major Saudi ports: Jeddah, Yanbu, Dammam, and Jizan, reflecting the country’s geographically diversified grain import and distribution strategy.
At Jeddah, a total of 300,000 tons was secured from major international traders, including Solaris, Olam, and Ameropa, with deliveries scheduled from early April through the end of May.
Prices at the Red Sea port ranged from US$258.50 to US$262.06 per ton C&F, reflecting relatively tight clustering amid strong competition among suppliers.
The largest volume was allocated to Yanbu, which will receive approximately 425,000 tons. Suppliers included Solaris, Cargill, Ameropa, Olam, Aston, and Soufflet, with shipments staggered across April and May.
Yanbu prices largely hovered between US$258.97 and US$261.83 per ton, highlighting the port’s role as a key entry point for Saudi Arabia’s western and central regions.
At Dammam, on the Arabian Gulf coast, the GFSA purchased 127,000 tons, supplied by Cargill and Louis Dreyfus, at prices of US$259.30 and US$264.84 per ton, respectively. Meanwhile, Jizan is set to receive 55,000 tons from Solaris, priced at US$262.06 per ton, with delivery scheduled for early April.
Traders noted that the tender’s expanded volume reflects both favorable pricing conditions and Saudi Arabia’s proactive procurement approach.
Global wheat prices have been influenced by mixed production outlooks in the Black Sea region, currency movements, and freight market fluctuations, prompting importers such as Saudi Arabia to lock in supplies when opportunities arise.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
