Saudi Arabia's SAGO buys 725,000 tonnes hard wheat

12.12.2016

Saudi Arabia's main state grain importer, the Saudi Grains Organization (SAGO), said on Monday it had bought 725,000 tonnes of hard wheat.

A tender closed on Friday for 715,000 tonnes of wheat with 12.5 percent protein for delivery Feb. 1 to April 10.

SAGO said the accepted origins were from the European Union, North and South America and Australia, at the seller's option.

Traders said they expected part of the purchase to be sourced in the United States.

"I think the U.S. is looking pretty competitive to Saudi Arabia, a high quality destination," one European trader said. "I do not expect Australia to be a source."

The shipments will be in 12 consignments, and will be distributed to three Saudi Arabian Sea ports, Ahmed al-Fares, governor of SAGO, said in a statement.

Of the total, 430,000 tonnes will go to Jeddah, 240,000 tonnes to Dammam and 55,000 tonnes to Jazan.

The following is a breakdown of the purchases in dollars per tonne with shipment period in brackets:

Jeddah (C&F):

-65,000 tonnes hard wheat from Glencore Grain at $208.15 C&F (Feb. 1-10)

-65,000 tonnes hard wheat from Glencore Grain at $205.15 C&F (Feb. 10-20)

-60,000 tonnes hard wheat from Glencore Grain at $206.80 C&F (Feb.20-28)

-60,000 tonnes hard wheat from Louis Dreyfus at $208.00 C&F (March 1-10)

-60,000 tonnes hard wheat from Louis Dreyfus at $208.00 C&F (March 10-20)

-60,000 tonnes hard wheat from Louis Dreyfus at $208.00 C&F (March 20-30)

-60,000 tonnes hard wheat from Louis Dreyfus at $208.00 C&F (April 1-10)

Dammam (C&F):

-60,000 tonnes hard wheat from Glencore Grain at $211.40 C&F (Feb. 1-10)

-60,000 tonnes hard wheat from Glencore Grain at $208.30 C&F (Feb. 20-28)

-60,000 tonnes hard wheat from Glencore Grain at $209.80 C&F (March 10-20)

-60,000 tonnes hard wheat from Louis Dreyfus at $209.50 C&F (April 1-10)


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