Saudi interests buy 600,000 tonnes feed barley
Paris/Hamburg, May 22, 2014
Saudi Arabian private interests have purchased about 600,000 tonnes of feed barley in the past two weeks which is likely to be sourced from the Black Sea region, European traders said on Thursday.
It was priced between $250 and $255 a tonne, traders said. One trader said the lowest price was $251 a tonne c&f. The grain was for July, August and September shipment.
The seller has the option to select the source country but traders said they expected the barley to come from origins including Romania, Russia, Ukraine and Bulgaria.
More purchases are possible, one trader said. One trader said Australia was a likely origin.
Saudi Arabia is a major importer of feed barley with purchases generally undertaken by direct negotiations with trading houses rather than tenders. This makes the details of purchases especially difficult to assess, traders said.
Another trader put the total purchased at around 900,000 tonnes in 15 consignments of 60,000 tonnes with the highest price at $259 a tonne c&f.
"There are no Argentine barley supplies that would make this kind of price, Canada and the US do not calculate so the origin would have to be the Black Sea," one trader said.
"I think purchases are being made to take advantage of lower prices being offered for the upcoming crop." - Reuters