New tender in Saudi Arabia has supported the world price of barley

Saudi Arabia, which is the main importer of barley, continues active procurement and significantly affect the world price for barley. Despite a small decline in consumption in the current season, the volume of tender procurement remains a significant and major influence on the market.

According to estimates by USDA in 2020/21 MG Saudi Arabia imports 7.6 million tons of barley.

Friday grain Agency Saudi Arabia SAGO purchased the tender of 600 thousand tons of feed barley optional origin for delivery in March and April at an average price of 277,8 $/t C&F, which is 43 $/t higher than the price of the previous tender on 13 November 2020, where it was acquired 730 thousand tons of feed barley for delivery in January – February at an average price 234,8 $/t C&F.

First we planned to buy 480 thousand tonnes of barley, so the purchase of larger lot indicates that the level of proposed prices was lower than expected by the Agency. Will deliver the barley, primarily produced in Russia, Aston, Bunge, CBH, Graincorp and Viterra.

Russia in the current season increased barley production to 22 million tons, and intensified its export. As of January 21, exported already to 3.36 million tonnes from a projected 5.5 million tons of barley, which is 52% higher than last year's pace. More than 50% of the specified amount purchased by Saudi Arabia.

Ukraine this year has reduced barley production to 7.8 million tonnes, but the pace of exports correspond to the last year, and as of January 20, exported 3.88 million tons from the estimated 4-4. 5 million tons.

boost exports contribute to the high purchase prices, which are in the port 238-242 $/t or 8000-8200 UAH/t, which is almost equal to the prices of maize, which declined slightly early in the week.

the European Union despite the increase in production has reduced the exports of barley in comparison with the previous season by 12% to 3.86 million tonnes due to high prices of supply.

Tunisian Agency ODC acquired the Friday the tender 100 kt (in terms of 75 thousand tons of feed barley with delivery by February 15 – March 25 at an average price of 286,4 ml $/t CFR, which is 44 $/t higher than the price of the previous tender on December 16.