JEDDAH – Saudi Arabia's grains authority bought 290,000 tons of hard wheat from North and South America, the European Union and Australia for shipment in October and November, it said in a statement on Sunday. “Saudi Arabia has bought 290,000 tons of hard wheat (12.5 percent protein) from the EU, Australia, North and South America (Seller options) for October and November shipments,” the Saudi Grain Silos and Flour Mills Organization said. Three vessels for 180,000 tons will be sent to Jeddah port while two other vessels for 110,000 tons will be sent to Dammam, the statement said. Average prices are $366.46 per ton C&F Jeddah and $379.50 C&F Dammam, it added. Hard wheat are hard dark-colored 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 program 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 percent to 669,900 tons by 2015-16 period. – SG/Reuters
