SAUDI ARABIA – Saudi Arabia’s state wheat buying agency GFSA on Thursday issued an international tender to purchase an estimated 715,000 metric tons of milling wheat between February and May 2024.

The deadline for submissions of price offers in the tender is Friday, Dec. 15, said GFSA governor Ahmad Al Fares in a statement.

Traders said results are expected on Monday, Dec. 18.

 The tender seeks hard wheat, with 12.5% protein content in 12 consignments mostly of 60,000 tons sourced from optional origins.

Traders said that four consignments totalling 240,000 tons were sought for arrival in Jeddah between Feb. 1-15 and May 1-15.

Three consignments totalling 180,000 tons are sought for arrival in Yanbu between Feb. 1-15 and April 1-15.

Four consignments totalling 240,000 tons are sought for arrival in Dammam between Feb. 1-15 and April 1-15, whereas one of 55,000 tons is sought for arrival in Jizan between May 1-15.

The statement, however, noted that the agency reserves the right to buy 10% more or less than the standard 60,000-ton size of consignment sought.

Traders believe that Saudi Arabia has been importing from Saudi Arabian farming investments abroad. In its last reported international wheat tender in June, Saudi Arabia bought 624,000 tons.

The General Food Security Authority (GFSA), an agency of the Saudi Ministry of Environment, Water and Agriculture, has a mandate to purchase up to 1.5 million tonnes of locally produced wheat annually according to the US Department of Agriculture’s Foreign Agricultural Service (USDA).

Recently, in its report, the USDA reported that Saudi Arabia’s domestic wheat production nearly doubled to 1.18 million tonnes and is expecting similar output in the 2023-24 marketing year.

The main reason for this drastic increase in domestic wheat production is the high government purchasing price (US$466 per tonne) offered to local farmers,” the FAS said,

“As long as government purchase prices remain high, domestic wheat production is projected to remain near 1.2 million tonnes.”

Wheat imports are also projected to increase in 2023-24 to 4.8 million tonnes, a 3% hike over the previous season, the same increase projected for the country’s wheat consumption, which is estimated at 4.5 million tonnes.

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