Saudi Arabia secures 621,000 tons of wheat in international tender
The wheat, with a protein content of 12.5%, is scheduled to arrive between August and October 2025
SAUDI ARABIA – Saudi Arabia has secured a new purchase of 621,000 metric tons of hard wheat through an international tender, as the Kingdom continues to shore up its strategic grain reserves amid volatile global markets.
The wheat, with a protein content of 12.5%, is scheduled to arrive between August and October 2025, according to a statement released on May 19 by the General Food Security Authority (GFSA), the country’s main state wheat buying agency.
The tender attracted offers from a broad range of origins, including the European Union, the Black Sea region, North and South America, and Australia.
Final decisions on the origin of supply were left to the discretion of the sellers. Industry traders anticipate that a significant portion of the wheat will be sourced from the Black Sea region, most likely from Russia, Romania, and Bulgaria, where export prices have remained comparatively low despite persistent geopolitical and logistical risks.
This latest purchase is slightly smaller than the 655,000 tons initially sought by GFSA. It also follows the Kingdom’s last reported wheat tender in February 2025, when it bought around 920,000 metric tons at an average price of US$276.37 per ton, cost and freight included.
In contrast, the average price in the May tender stands at approximately US$252 per ton, a nearly 9% drop, reflecting the recent easing of global grain prices.
The procurement details show a diversified delivery schedule across Saudi Arabia’s major seaports. For Jeddah, three contracts were awarded: 60,000 tons from Louis Dreyfus at US$251.99 per ton, another 60,000 tons from AST Group at US$252.00, and a third from Solaris at US$252.27 per ton.
At Yanbu Port, GFSA purchased five separate shipments totaling 325,000 tons from suppliers including Viterra and Agricost, with prices ranging from US$247.69 to US$252.42 per ton.
Meanwhile, two contracts for Dammam Port involved Louis Dreyfus again, supplying a total of 116,000 tons at slightly higher prices of US$254.79 and US$256.29 per ton.
The total value of the purchase is estimated at US$156.6 million. While smaller than the February deal, the procurement signals the Kingdom’s continued effort to manage risk in the grain supply chain through strategic timing and diversified sourcing.
GFSA Governor Ahmad Al-Fares noted that recent tenders increasingly involve wheat supplied via Saudi Arabia’s international agricultural investments, a growing part of the country’s food security strategy.
Indeed, the Kingdom’s agricultural policy has shifted dramatically in recent years. Following the phase-out of domestic wheat production in 2016 due to concerns over water scarcity, Saudi Arabia has ramped up its investments in overseas farmland and agribusiness.
Through entities like the Saudi Agricultural and Livestock Investment Company (SALIC), the country has acquired stakes in farmland and trading operations in countries such as Ukraine, Sudan, and Australia. These investments are intended not just to diversify supply but also to offer insulation from market shocks.
Wheat remains a critical staple in the Saudi diet, forming the basis of products like flatbreads, burghul, and semolina.
According to USDA estimates, Saudi Arabia imported about 3.5 million metric tons of wheat in 2024, a slight decrease from the previous year, largely due to improved yields in supplier countries and falling commodity prices.
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