August 15, 2011

Saudi Arabia buys 660,000 tonnes hard wheat

Saudi Arabia has bought 660,000 tonnes of hard wheat from the US, Europe, Australia and Canada for the November to February delivery, according to the Grain Silos and Flour Mills Organization.

The average price is US$346 per tonne, including cost and freight, the government-run wheat importer said. The kingdom will receive six shipments in the port of Jeddah and six in Dammam, according to them.

Saudi Arabia is raising grain imports as part of a plan to phase out water-intensive food crops by 2016. Food was the biggest import in May at the kingdom's eight ports, according to data on the website of the Saudi Ports Authority.

Domestic producers have supplied 800,000 tonnes of wheat this year, the official Saudi Press Agency reported today, citing Waleed Al-Khariji, the director general of the organisations. Domestic wheat production is forecast at 1.1 million tonnes this year, the news service said.