The next tender in Saudi Arabia will set the trend in barley prices

2019-03-22 12:05:49
Machine translation
The next tender in Saudi Arabia will set the trend in barley prices

State grain operator in Saudi Arabia SAGO will hold on Thursday the first of this year the tender for purchase of 720 thousand tons of barley during the period may 15 – July 30.

 

This will be the first auction after the purchase in November last year, 1 million tonnes of barley at a price 265-266 $/t CFR for delivery in January-February for the purchase of 1.5 million tons in September at a price of 260 $/t CFR.

 

Due to the high volume of proposals of maize and the low demand for barley, the world price of barley dropped to 220-230 $/t CFR for shipments in March-April.

 

Usually Saudi Arabia buys 8 million tonnes of barley, however in the current season can reduce imports by 12% to 7.5 million tonnes due to powerful rainfall, which improved the condition of pastures, as well as the active use of animal feed instead of the traditional animal feed barley.

 

According to estimates by USDA, Saudi Arabia in 2018/19 MG will increase corn imports by 16% to 4.54 million tonnes in 2019/20 MG another 13% to 5.14 million tons.

 

Ukraine, which is a major supplier of barley to the world market, this season has significantly reduced the volume of export and sold only at 3.24 million tonnes of barley compared to 4 million tons at the same date last year. The experts of "APK-inform" has lowered the forecast of export of domestic barley to 2018/19 Mr from 4.2 to 3.8 million tons because of a shortage of proposals and the failure of traders to accumulate the ship's party. In February, it was shipped only 10 thousand tons of barley, and in March, it did not exported.

 

barley Prices at the port fell to 170-180 $/t compared to 220-225 $/t in September-October.

 

the world market for Argentine barley offer for 180 $/t, FOB Up River, the Russian – 195-200 $/t FOB Novorossiysk, Romanian – 200 $/MT FOB Constanta, French – 208-210 $/t FOB.

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