Tender in Saudi Arabia provides a boost to the prices of fodder

last week, State news Agency Saudi Arabia SAGO held a tender for the purchase of 1 million tonnes of barley, which purchased 1.5 million tons of barley at a price 260,79 $/MT CIF ports of the red sea and the Persian Gulf for delivery in November and December.

the purchase Price was 15% higher than at the previous tender when it was purchased of 1.74 million tonnes of barley at a price 226,5 $/t CIF.

Sharp rise in prices due to reduced world production of barley to the lowest level of the last 6 seasons – 140 million tons because of drought in the Ukraine, the EU and Australia.

In the previous season, the procurement price of barley in tenders in Saudi Arabia determined the dynamics of prices for feed grain. If early in the season barley bought at 200-218 $/t CIF in February and March, prices rose to 238-257 $/t CIF, which led to the increase in prices on wheat and corn by 15-17%. After tender prices fell to 223,94-233,49 $/t CIF, the world price for corn and feed wheat also fell.

it is Expected that in the future the balance of production and consumption will be reduced from the USDA forecasts of gross yield of barley and wheat in the current season due to lower production in the EU, Australia and the countries of the black sea.