Saudi Arabia stops buying Canadian wheat, barley

CAIRO Aug 8 SEE – Saudi Arabia's main state wheat buying agency  told grains exporters it will no longer buy Canadian wheat and barley in its international tenders on Tuesday, as a diplomatic dispute between the two countries escalates, Reuters reported.

Canada refused to back down in its defence of human rights after Saudi Arabia froze new trade and investment and expelled the Canadian ambassador in retaliation for Ottawa's call to free arrested Saudi civil society activists.

''The Middle East had been importing less wheat from Canada and the United States in recent years due to higher shipping costs while China has become a bigger barley buyer,"analysts said.

But given tightening global grain supplies due to weather problems in Russia, Europe and Australia, Canada might have been poised to win more Saudi barley business.