Saudi Arabia's SAGO locks up 1.26m mt Jan-Apr hard wheat

1 Nov 2021 | Veronika Prykhodko

Saudi Arabia’s state grain buyer has successfully closed the wheat tender it announced Thursday and booked twice as much volume than it initially tendered for, market sources told Agricensus Monday.

The Saudi Arabia Grain Organization (SAGO) sought 655,000 mt of optional origin milling wheat for January-April arrival but closed the tender after securing 1.26 million mt of 12.5% protein hard wheat at the average price level of $377.54/mt CFR Saudi Arabia.

Trading house Viterra dominated the tender, supplying 715,000 mt of wheat, while Louis Dreyfus sold 252,000 mt and the rest of the volume secured by Holbud, Soufflet and GTCS, according to trade sources.

SAGO locked up 509,000 mt for delivery into Jeddah seaport, with 251,000 mt booked at $376.42/mt on average for delivery between January 10-20, and 65,000 mt at $371.11/mt for February 10-20 arrival.

On top of that, the agency booked another 128,000 mt at $376.75/mt for March 10-20 and finally 65,000 mt at $378.61/mt for April 10-20.

In total, SAGO booked another 384,000 mt for delivery into the Red Sea port of Yanbu, including 191,000 mt traded at $375.97/mt on average for January 10-20, 128,000 mt at $374.75/mt for February 10-20, and 65,000 mt at $378.61/mt for April 10-20.

The organization secured 320,000 mt to be delivered into the Arabian Gulf port of Dammam, with 190,000 mt sold at $383.74/mt for January 10-20 arrival, 65,000 mt at $379.11/mt for February 10-20 and another 65,000 mt at $377.11/mt for March 10-20.

Finally, 65,000 mt of hard wheat were booked at $379.84/mt CFR basis for Jizan in the Red Sea for delivery between January 10-20.

At its previous tender, which closed on September 13, SAGO secured 382,000 mt of milling wheat paying $355.68/mt CFR on average for November delivery.

Saudi Arabia's wheat imports are estimated at 3 million mt in the 2021/22 marketing year, according to the USDA.

The current purchase pushed the total amount booked so far to 2.7 million mt, meaning the USDA's forecast is almost reached.

For more information on Saudi Arabia’s buying, please see our Tender Dashboard.

Correction: USDA's forecast number and the total bought amount were corrected