Saudi Arabia’s SAGO pays $20/mt less as wheat prices fall

05.03.2019

Saudi Arabia’s state grain buyer bought 625,000 mt of milling wheat for almost $20/mt less than it paid at its previous tender back in November, SAGO said on its website Monday.

SAGO booked more than it had initially tendered for, paying an average $248.16/mt CIF after wheat prices slumped in recent weeks as concerns over tight global supply have eased.

The bulk of the wheat is for delivery April 20-June 30 to Jeddah and Dammam, with an additional cargo for delivery June 1-10 to Jazan.

German and Baltic cargoes are the most likely source, market sources told Agricensus Monday, with low origin prices and freight making Saudi Arabia’s regular suppliers look competitive.

German 12.5% protein milling wheat was offered at $228-9/mt FOB for April delivery on Monday morning, while the current freight for a panamax cargo from Baltic region stands at $28/mt, according to shipping analytics agency ISM.

Some in the trade also speculated US wheat may also be able to price competitively into Saudi Arabia at current levels.

At its previous tender on November 19, SAGO has bought 495,000 mt at an average price of $267.85/mt for delivery January 5-March 20.


AgriCensus

Readers choice: TOP-5 articles of the month by UkrAgroConsult