The purchase price for barley in Saudi Arabia grew by 6.5 $/t

2019-11-19 12:06:00
Machine translation
The purchase price for barley in Saudi Arabia grew by 6.5 $/t

State operator Saudi Arabia SAGO in the tender 15 Nov purchased 1.02 million tons of feed barley for delivery in February and March at an average price of 216,62 $/t CFR, which is by 6.67 $/t higher than the purchase price of the previous trading session on September 30, when it was also contracted by 1.02 million tonnes of barley.


Main supplier was again Glencore and the company Casillo, Cofco, Holbud, Glencore, Graincorp and Soufflet.


this season, SAGO purchased 4.56 mln tonnes of barley, 1.2 million tons is inferior to the corresponding indicator of the previous year.


the Experts at the USDA offices in Riyadh reduced the forecast of imports of feed barley in 2019/20 Mr to Saudi Arabia, which is the world's largest buyer of the product, up to 6 million tons due to the favorable conditions for grazing animals, due to sufficient rainfall.


IGS estimates, world production of barley in 2019/20 MG will grow by 10% to a record high of 154.7 million tonnes, primarily due to the increase in yield in the EU.


bountiful harvest and the fall of the Euro allows the EU to actively export barley. Since the beginning of the season has already sold 3 million tonnes, which is 42% higher than the corresponding figure of the previous MG.


Ukraine in the current season as of September 15, exported 3.4 million tonnes of barley, which was 13% more than in the same period in 2018, exports are Now slowing down because prices since the beginning of the season remain the same and are in the port 164-168 $/t, while the sellers expect their growth. However, the results of the tender in Saudi Arabia will not help that. Some traders complete the programme of purchases of barley, slightly raise prices in order to attract volumes, but such situations are rare.


Russia in comparison with last year increased production of barley from 17.7 to a record 21.6 million tons, but reduced its exports by 25% to 1.6 million tonnes, as against the background of low world prices, the producers are holding back sales in expectation of market growth of barley similarly, the October growth in the wheat market. But low demand will put pressure on world prices at least until spring, until the sowing of the new crop and will not become clear as winter barley after winter.

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