HAMBURG/DUBAI - Saudi Arabia’s main state wheat buying agency the Saudi Grains Organization (SAGO) said on Thursday it has issued an international tender to purchase about 900,000 tonnes of animal feed barley.
The tender deadline is Jan. 24, it said.
The barley is sought from global suppliers for arrival in Saudi Arabia in March and April.
“This is the first barley tender for SAGO for 2020,” SAGO Governor Ahmad Al Fares said in a statement. “The 900,000 tonnes comprises 15 individual cargoes to be purchased from global suppliers.”
Some 660,000 tonnes are sought for shipment to Red Sea ports and 240,000 tonnes to Gulf ports, he said.
Traders said these shipment periods were being sought in the tender in tonnes: Arrival Any Red Sea port Any Gulf port March 15-30 180,000 (3 ships) 120,000 (2 ships) April 1-15 240,000 (4 ships) 60,000 (1 ship) April 15-30 240,000 (4 ships) 60,000 (1 ship)
Traders said the tender was probably too large to be sourced from a single origin at this time of the season.
"I think the tender will be supplied by a range of origins with the Black Sea and European Union having a good position," one European trader said. "I think Russian barley will be offered."
In its last reported feed barley tender on Nov. 18, 2019, SAGO bought 1.02 million tonnes at an average price of $216.62 a tonne c&f.
The origins offered in the November tender were the European Union, Australia, North America (excluding Canada), South America and the Black Sea region, with the seller having the option of selecting the source country.
(Reporting by Michael Hogan and Maha El Dahan; editing by Mark Trevelyan) ((email@example.com; +49 172 671 36 54; Reuters Messaging: firstname.lastname@example.org))