Fri. Mar 1st, 2024
Saudi Arabia issues tender to buy estimated 715000 T wheatSaudi Arabia issues tender to buy estimated 715000 T wheat

HAMBURG: Saudi Arabia’s governmental wheat procurement body, the General Authority for the Food Security (GFSA), announced on Thursday that it has released a global tender for the acquisition of 715,000 metric tons of milling wheat. This confirmation aligns with previous indications reported by European traders.

In a comprehensive statement released by GFSA Governor Ahmad Al Fares, it was disclosed that the agency is actively seeking delivery within a flexible timeframe, spanning from February to May 2024.

The stipulated deadline for the submission of price offers in response to the tender has been set for Friday, December 15, with the eagerly awaited results slated to be disclosed on Monday, December 18.

The intricacies of the tender reveal that GFSA is specifically in pursuit of 12 consignments, each comprising 12.5% protein wheat, with a preference for quantities predominantly set at 60,000 tons.

Notably, the agency has outlined specific requirements, with four consignments totaling 240,000 tons sought for arrival in Jeddah within the timeframe of February 1-15 and May 1-15.

Simultaneously, three consignments, totaling 180,000 tons, are earmarked for arrival in Yanbu between February 1-15 and April 1-15, while another four consignments, totaling 240,000 tons, are being sought for delivery in Dammam between February 1-15 and April 1-15. Additionally, a singular consignment of 55,000 tons is specified for arrival in Jizan between May 1-15.

It is worth noting that GFSA maintains the prerogative to procure 10% more or less than the standard 60,000-ton size as specified in the tender.

Saudi Arabia issues tender to buy estimated 715000 T wheat
Saudi Arabia issues tender to buy estimated 715000 T wheat

Industry experts and traders are engaging in speculative discourse, suggesting that Saudi Arabia might be strategically importing wheat from its overseas farming investments.

In a notable benchmark, the country procured a substantial 624,000 tons in its most recent international wheat tender held in June.

Furthermore, it’s pertinent to highlight the agency’s rebranding initiative from the Saudi Grains Organization (SAGO) to the General Food Security Authority (GFSA), a transformation implemented in January.

This evolution signifies a broader perspective and a more comprehensive approach to food security measures by the Saudi government.

Monetary policy blues

By Zarish

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