Saudi Arabia buys 1 million mt of barley, pays 2.4% more

Saudi Arabia’s state grain buyer SAGO bought 1.02 million mt of barley at tender Friday, paying 2.4% more than at its previous tender five weeks ago, market sources confirmed Monday.

SAGO paid an average $249.23/mt for seventeen 60,000 mt cargoes to be delivered into ports on the Red Sea and Gulf between mid-May and the end of June.

The price paid shows the rally in global barley prices of late on the back of tightening supply, with SAGO paying an average $243.47/mt CFR for 960,000 mt at its previous tender in mid-February.

With prices ranging from $238.47-$257.47/mt, market sources speculated origins would include the Black Sea, France, Germany and even Argentina, but most likely not Australia.

Agricensus assessed Russian-origin barley at $220.25/mt FOB Novorossiysk Friday, while Australian barley is at $240.50/mt FOB Western Australia.