Saudi Arabia secures 920,000MT of wheat in major international tender

SAUDI ARABIA – Saudi Arabia’s General Food Security Authority (GFSA) has announced that it has purchased approximately 920,000 metric tons of wheat in an international tender, significantly exceeding the initial target of 595,000 tons.

The wheat was acquired at an average price of US$276.37 per ton on a cost and freight (c&f) basis, confirming earlier reports from traders. The purchase involved hard wheat with a protein content of 12.5%, sourced from multiple global regions.

The wheat was sourced from a variety of regions, including the European Union, the Black Sea region, North America, South America, and Australia.

Ahmad Al-Fares GFSA Governor stated that sellers had the flexibility to select the origin of the wheat supplied. Traders indicated that a significant portion of the purchase is expected to come from the Black Sea region, with Romania potentially supplying 300,000 tons and Bulgaria contributing additional volumes.

Russia is also expected to provide at least two consignments, while Australia is likely to supply at least two shipments as well.

“There could be quite a number of origins involved in the purchase,” noted a European trader, highlighting the diversity of the sourcing strategy. This approach ensures a steady supply of wheat to meet Saudi Arabia’s food security needs.

Breakdown of purchases by port and supplier

The GFSA provided a detailed breakdown of the purchases, specifying the sellers, prices, and delivery timelines for shipments arriving at various Saudi ports.

 At Jeddah Port, notable transactions included 60,000 tons from Solaris at 276.11perton (May1−15) and multiple consignments from Olam, ranging from276.11 perton (May1−15) and multiple consignments from Olam, ranging from US$275.00 to US$279.25 per ton, with delivery periods stretching into July.

Yanbu Port will receive shipments from suppliers such as Ameropa, Solaris, Cerealcom, Olam, and Bunge, with prices ranging from US$268.50 to US$268.50 to US$279.44 per ton.

Dammam Port is set to receive 60,000 tons from Cargill at US$277.70 per ton, 60,000 tons from CBH at US$277.70 per ton, and 60,000 tons from CBH at US$284.90 per ton, both arriving in early May. Additionally, Jizan Sea Port will receive 55,000 tons from Cerealcom at US$272.50 per ton in early July.

This tender marks a significant step in Saudi Arabia’s efforts to strengthen its food security reserves. The GFSA’s previous wheat tender, reported on December 16, resulted in the purchase of 804,000 tons, making this latest acquisition a notable increase in volume.

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