Saudi Arabia back for 1 million mt of barley despite rally

Saudi Arabia’s state grains buyer SAGO is back in the market, looking for 1.02 million mt of wheat for delivery May 13-June 30, market sources said Thursday.

SAGO is looking for a total of 17 cargoes, with the tender expected to close Friday, with the results released early next week.

At its previous tender in mid-February, SAGO paid an average $243.47/mt CFR for 960,000 mt.

Barley prices have spiked over the course of the 2017/18 marketing year as tight supply has pushed feed barley to trade at a premium to milling wheat – almost unheard of in the trade.

Since its last tender, Agricensus’ barley assessments have shown Russian barley prices increasing 4.4% to $219/mt FOB Novorossiysk and Australian prices increasing 1.9% to $240.25/mt FOB Western Australia.

SAGO’s own market report issued Tuesday showed the delivered price of Russian barley equivalent to $238.30/mt CIF Saudi Arabia, German barley at $244.30/mt, and Australian at $267.80/mt.