Big Saudi win for barley sector

Big Saudi win for barley sector with 600,000 tonnes sold

Cropping
SAUDI SALES: There was good news for Australian barley growers last week with strong sales to Saudi Arabia.

SAUDI SALES: There was good news for Australian barley growers last week with strong sales to Saudi Arabia.

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Australia will send 600,000 tonnes of barley to Saudi Arabia after winning the contracts at the Saudis' recent barley tender.

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SAUDI Arabia has bought up big at its latest barley tender, with Australia the major beneficiary.

According to Thomas Elder Markets around 600,000 tonnes of the 660,000 tonnes tendered at the transaction will be supplied by Australia.

And the prices were good from what is traditionally a particularly price-conscious customer, with average free on board (FOB) values of $A358 a tonne.

South Australia is likely to be one of the big winners, with Viterra winning 360,000 tonnes at the tender.

Mr Whitelaw said Australian barley was currently very competitive on the world stage.

"Australian barley is in demand and these sort of sales are getting rid of a large volume of grain at a very good price," he said.

Mr Whitelaw said high global prices had meant fears the Chinese tariffs would have a catastrophic impact on Australian sales had been allayed.

"It has been a good set of circumstances, there was a big crop but there is strong demand for it."

Mr Whitelaw said China's massive purchases of feed grain in recent weeks may be spurring other grain consumers to secure stocks earlier.

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