SAUDI Arabia completed negotiations with suppliers overnight for its tender to buy barley. The buying agency announced it had purchased just over 1.5 million tonnes of feed barley at price US$188.92/t cost and freight.
While the contracts will specify optional origin — South America, EU, Black Sea and Australia — Australia has a strong likelihood of providing many of the 25 panamax cargoes, depending on available stem and barley up-country logistics, to arrive at the rate of around two cargoes per week at Red Sea port(s) and one cargo per week to Gulf port(s) in May and June 2017.
Australia’s shipment volume of barley in the 2016-17 marketing year was aided by competitive pricing and reduced current year exports from EU, Argentina and Black Sea origins.
The price at which the previous business was concluded early February for similar quantity – arrival March/April/May – was US$190.70/t, while the first 2017 Saudi barley transaction – for arrival January to March – was just under a million tonnes at price US$186.15/t.