Tender in Saudi Arabia smashed hopes of a rise in the price of barley

State operator Saudi Arabia SAGO at the next tender acquired a 1.08 million t (with a planned 960 thousand tons) of feed barley for delivery in August-September at an average price of 198,81 $/t CIF, which is almost unchanged in comparison with the price on April 10, when it was acquired 600 thousand tons of barley in July-August at an average price of 198,63 $/t CIF.

a Major supplier of barley became Glencore with a share of total purchased volume of 960 thousand tons will be Delivered barley of arbitrary origin, with the exception of the canadian, the purchase of which is prohibited through a long diplomatic skirmish between the two countries.

Saudi Arabia is the world's largest importer of feed barley, so each purchase becomes tender price indicator for the market. Traders expect that on the background of the forecasts of yield reduction of barley in the EU, Ukraine and Russia, the price of barley of the new harvest will grow after the prices for wheat.

According to analysts, in 2019/20 MG Saudi Arabia will reduce import of feed barley to 6.6 million tonnes in 2020/21 MG, according to USDA forecast, will decrease to 6 million tons.

IN 2019/20 MG-exporting countries due to the good harvest has been able to increase exports of barley. Compared to the corresponding period of last season, the EU increased its exports by 64% to 7.07 million tonnes (44% more than the average 3-year rate), Ukraine – 35% to 5 million tonnes, Russia – to 3.6 mln t (the forecast export 5 million tons).

USDA Experts expect that in 2020/21 MG world production of barley would be was 155.3 million tonnes, which almost correspond to the index 2019/20 Mr – 156,3 million tons, and the volume of world exports will also remain at last year's level of 25.3 million tons.

Ukraine, according to estimates by the USDA, collect 9.4 million tonnes of barley, which corresponds to the last year level, of which exports 5 million tons, while experts of APK-inform Agency estimated the harvest at 6.8 million tons and exports to 3.6 million tonnes, because of the spring drought caused damage to crops of winter barley in the South of the country.

French Ministry of agriculture lowered the forecast production of winter barley compared to the previous year by 12% to 8.2 million tonnes, as the number of crops of winter barley in good condition decreased from 74% to 52%, whereas spring barley – from 87% to 54%.

In the South of Russia, the crops of barley has also suffered from spring drought, so the crop in comparison with the previous season reduced.