Saudi Arabia’s main state wheat buying agency the Saudi Grains Organization (SAGO) has agreed to buy 625,000 tons of wheat in an international tender, SAGO said on Monday, Trend reports citing Al Arabiya.
SAGO said it made the purchase at an average price of $422.47 a ton. That was up sharply from $365.14 a ton c&f paid in SAGO’s previous wheat tender in December.
Traders say Saudi Arabia is among importing countries hit by disruption to Ukrainian and Russian grain exports and surging prices of wheat and other commodities.
The shipments will be delivered between September and November, the state grains importer said.
The tender had sought 355,000 tons of hard wheat with 12.5 percent protein content and closed on Friday.
Origins offered were the European Union, Black Sea region, North America, South America and Australia with the seller having the option of selecting the origin supplied, SAGO governor Ahmad al-Fares added in a statement.
The shipments will be in 11 consignments distributed among four Saudi Arabian Sea ports.