Jordan buys 150,000 T European-origin barley
Amman, August 18, 2010
Jordan bought 150,000 tonnes of European-origin barley at $298.90 C&F for shipment in September and October in the first purchase of non-Black Sea origin barley in several years, a grain official said.
Three cargoes of 50,000 tonnes of barley, bought from Glencore, are for shipment in the first half of September, the second half of September and the first half of October.
Glencore's offer was by far the lowest among several major trading firms that bid in the tender which closed on Wednesday and had seen stiff competition, traders said.
They said the following bids were made per tonne c&f: Bunge $317, Louis Dreyfus $320, Cargill $317.49, and MidGulf $338.
A grain export ban in drought-hit Russia, and possible restrictions in Ukraine mean Jordan must seek alternatives to its traditional Russian and Ukrainian suppliers.
The grain official said this was the first purchase of non-Black Sea origin barley in several years, but could not be more specific.
This is Jordan's first barley purchase since January when it bought 100,000 tonnes of Russian barley at $174.87 per tonne c&f. Last year, it raised reserves to record levels in an aggressive buying spree to build its grains stockpile, but had held back in recent months in hopes prices would fall.
Jordan has been under pressure this week to buy barley and wheat to build its stockpile and could not risk delaying purchases until prices ease even though the bullish market will increase its import bill by at least $150 per tonne.
On Aug 12, Jordan bought from international grain house MidGulf a total of 100,000 tonnes of German wheat for shipping in September and October.
Jordan's monthly consumption of wheat is between 50,000 and 60,000 tonnes it imports a similar quantity of barley. Trade officials have said the goal is to maintain a comfortable six-month supply level of about 350,000 tonnes of wheat and a four-month supply of barley. - Reuters