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Saudi Arabia buys 1.02 mln T of feed barley in big sale by Glencore

Published 2018-11-05, 07:52 a/m
© Reuters.  Saudi Arabia buys 1.02 mln T of feed barley in big sale by Glencore
GLEN
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* Saudi Arabia is world's largest buyer of feed barley

* Traders say spread of origins may include Argentina

* Glencore dominates tender, sells all but one cargo

By Maha El Dahan and Michael Hogan

DUBAI/HAMBURG, Nov 5 (Reuters) - Saudi Arabia, the world's largest feed barley buyer, said on Monday it bought 1.02 million tonnes of the grain in an international tender, predominantly from Glencore GLEN.L .

The barley was purchased at an average price of $266.83 per tonne, cost and freight, and the offered origins were from the European Union, Australia, the Black Sea, and North and South America, excluding Canada, state grain buyer, the Saudi Grains Organization (SAGO), said in a statement.

All of the shipments, except one 60,000-tonne cargo, will be supplied by Glencore.

"Regarding the tender that was closed today, SAGO always takes the lowest price offered for grain, and in this tender it was heavily dominated by Glencore, one of the largest marketers of grains globally," SAGO governor Ahmad Al Fares told Reuters.

"This SAGO tender, like previous, received many offers from the majority of the approved suppliers - 18 companies - but in the end who has offered the lowest price for each cargo will win."

Traders said Black Sea supplies were looking tighter than thought after an export surge in the past months and so the sale could be a spread of origins, including Argentina.

"This looks super cheap, it is a remarkable success for Glencore," one European trader said.

Other traders said the sale looked around $10 cheaper than the market.

Of the total purchase, 11 cargoes will be shipped to Red Sea ports and six to Gulf ports, SAGO said.

SAGO gave the following breakdown of the purchase:

-Red Sea Ports:

-60,000 tonnes from Glencore at $265.42 (Jan. 1-15)

-60,000 tonnes from Glencore at $265.52(Jan. 15-30)

-60,000 tonnes from Glencore at $265.62 (Jan. 15-30)

-60,000 tonnes from Glencore at $265.72 (Jan. 15-30)

-60,000 tonnes from Glencore at $265.82 (Jan. 15-30)

-60,000 tonnes from Glencore at $265.92 (Feb. 1-15)

-60,000 tonnes from Glencore at $266.02 (Feb. 1-15)

-60,000 tonnes from Glencore at $266.12 (Feb. 1-15)

-60,000 tonnes from Glencore at $266.22 (Feb. 15-28)

-60,000 tonnes from Glencore at $266.32 (Feb. 15-28)

-60,000 tonnes from Glencore at $266.42 (Feb. 15-28)

-Gulf Ports:

-60,000 tonnes from Glencore at $268.54 (Jan. 1-15)

-60,000 tonnes from Cofco Resources at $267.24 (Jan. 15-30)

-60,000 tonnes from Glencore at $268.64 (Jan. 15-30)

-60,000 tonnes from Glencore at $268.74 (Feb. 1-15)

-60,000 tonnes from Glencore at $268.84 (Feb. 15-28)

-60,000 tonnes from Glencore at $268.94(Feb. 15-28)

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