Saudi Arabia cancelled a tender on Monday morning to import 535,000 tonnes of wheat from Ukraine after it was unable to secure shipping companies willing to sail to Saudi ports on the Red Sea.

The Saudi General Food Security Authority had invited shipping companies from around the world to bid to transport 535,000 tonnes of wheat from Ukraine in nine shipments to the ports of Yanbu, Jeddah and Jizan.

However, the majority of shipping companies refused because of the Yemeni sanctions imposed on Saudi maritime shipping in the Red Sea, while a minority agreed, but at double the usual prices in order to cover the risks of entering Saudi ports.

Saudi Arabia said in its justification for cancelling the tender that the prices being offered were unreasonable and excessive.

Wheat and wheat product prices in Saudi Arabia are experiencing an unprecedented rise, alongside a marked decline in supply relative to demand.