August 7, 2012
Saudi Arabia purchases hard wheat from US, EU, Australia
For shipment in October and November, Saudi Arabia's grains authority bought 290,000 tonnes of hard wheat from North and South America, the EU and Australia.
"Saudi Arabia has bought 290,000 tonnes of hard wheat (12.5% protein) from the EU, Australia, North and South America (Seller options) for October and November shipments," the Saudi Grain Silos and Flour Mills Organisation said.
Three vessels for 180,000 tonnes will be sent to Jeddah port while two other vessels for 110,000 tonnes will be sent to Dammam, the statement said. Average prices are US$366.46 per tonne C&F Jeddah and US$379.50 C&F Dammam, it added.
Hard wheat is hard dark-coloured kernels high in gluten and used for bread and pasta, grown especially in southern Russia, North Africa, and northern central North America.
BMI said in its "Saudi Arabia Agribusiness Report Q3 2012" that while wheat production is forecast to decline in 2012-13, the fall is seen to be less severe owing to limited grains exports.
Wheat production will continue to decrease in the coming years on the back of the government's programme to phase out production, the report said. The report believes that the government will go ahead with its plan to phase out wheat production altogether in the next decade.
Wheat production growth will further decline 46.9% to 669,900 tonnes by 2015-16 period.