DUBAI/HAMBURG - Saudi Arabia’s main state cereals-buying agency, the Saudi Grains Organization (SAGO), said on Thursday it had issued an international tender to purchase about 720,000 tonnes of animal feed barley, confirming earlier trader reports.
The tender deadline is Friday, March 22, with offers having to remain valid until Monday March 25.
Sago is seeking a total of 12 shiploads of around 60,000 tonnes.
Shipments are sought for unloading in both Saudi Red Sea ports and Gulf ports, SAGO governor Ahmad Al Fares said in a statement.
For shipment to Red Sea ports, SAGO is seeking 10 cargoes of 600,000 tonnes while two shipment of 120,000 tonnes are sought to Gulf ports, SAGO said.
Traders gave these detailed arrival periods:
May 15-30: 180,000 tonnes Red Sea in three ships
June 1-15: 240,000 tonnes Red Sea in four ships, 60,000 tonnes Gulf in one ship
June 15-30: 180,000 tonnes Red Sea in three ships, 60,000 tonnes Gulf in one ship
Individual ship loads can be 10 percent more or less than 60,000 tonnes.
SAGO has been absent for an unusually long period from the international barley market since its last purchase of just over 1 million tonnes on Nov. 5, 2018.
This reduced global barely demand and helped put sharp downward pressure on barley prices. It also prompted speculation about Saudi import policy, while some traders said rainy weather had helped local fodder crops.
(Reporting by Maha El Dahan and Michael Hogan Editing by David Holmes) ((email@example.com; +49 172 671 36 54; Reuters Messaging: firstname.lastname@example.org))