Saudi Arabia issues tender to buy about 360,000 tonnes of wheat

PARIS/HAMBURG: Saudi Arabia's main state wheat buying agency, the Saudi Grains Organization (SAGO), said on Thursday it had issued an international tender to purchase about 360,000 tonnes of milling wheat.

The tender deadline is Friday, Sept. 10, SAGO said, confirming earlier reports from traders.

Traders said SAGO had lowered the requirement for test weights, a key milling criteria, for wheat to be supplied to 76.

This would help offers of European wheat after crops in France and elsewhere were damaged by late harvest rain, traders said.

The wheat was sought for arrival during November in six consignments, with 120,000 tonnes each to be shipped to the ports of Jeddah, Dammam and Yanbu, said SAGO governor Ahmad Al Fares in a statement.

Traders said hard wheat with 12.5% protein content was sought from global origins all in 60,000 tonne consignments.

For Jeddah, one consignment is sought for arrival between Nov. 10-20 and one between Nov. 20-30, traders said.

For the port of Dammam, one consignment is sought for arrival between Nov. 1-10 and one between Nov. 20-30.

For Yanbu, one consignment is arrival between Nov. 10-20 and one between Nov. 20-30.

SAGO reserves the right to buy 10% more or less than the tender volumes, traders said.

In its last reported wheat tender on July 12, SAGO purchased around 505,000 tonnes at an average price of $287.00 a tonne c&f.