Saudi Arabia issues tender to buy about 540,000 tonnes barley

The deadline for submission of price offers is believed to be Friday, March 5

  
Cereal crop in field at sunset. Image used for illustrative purpose.

Cereal crop in field at sunset. Image used for illustrative purpose.

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HAMBURG  - Saudi Arabia’s main state buying agency, the Saudi Grains Organization (SAGO) has issued an international tender to purchase about 540,000 tonnes of animal feed barley, European traders said on Thursday.

The deadline for submission of price offers is believed to be Friday, March 5, traders said.

Price offers must remain valid up to Monday, March 8, when the tender result is also expected, traders said.

Traders said these consignments were sought for these arrival dates in 2021: Any Red Sea port April 15-April 30: 120,000 tonnes in two vessels May 1-May 15: 120,000 tonnes in two vessels May 15-May 31: 120,000 tonnes in two vessels

Any Gulf port April 15-April 30: 60,000 tonnes in one vessel May 1-May 15: 60,000 tonnes in one vessel May 15-May 31: 60,000 tonnes in one vessel

SAGO reserves the right to buy more or less than the tender volume.

In its last barley tender on Jan. 25, SAGO bought 660,000 tonnes at an average price of $277.65 a tonne c&f for delivery in March and April. 

But international grain prices have firmed since, after Russia imposed grain export taxes to reduce its overseas shipments and cool domestic prices.  

(Reporting by Michael Hogan; Editing by Clarence Fernandez) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))

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