Saudi Arabian buyers purchase 330,000 tonnes feed barley

Updated 05 October 2012
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Saudi Arabian buyers purchase 330,000 tonnes feed barley

HAMBURG: Saudi Arabian private buyers have purchased 330,000 tons of feed barley of optional origin thought likely to be sourced from Argentina and Australia,European traders said on Friday.
Price was between $335 and $340 a ton c&f depending on Saudi port of discharge.
The grain was for shipment in December 2012 and January 2013, traders said.
The Black Sea region is traditionally Saudi Arabia’s main supplier of feed grains. But crops in Russia and Ukraine were seriously damaged by a summer drought and heatwave this summer, cutting supplies for grain exports.

“It looks like Saudi buyers will be compelled to buy from much further afield in the next few months,” a trader said.

“They have already bought a lot in west Europe.” Another trader said: “The Saudis offered about $330 a ton for October shipment in the Black Sea market and could not get anything like the volumes offered from Argentina and Australia.”

“Argentine barley export selling prices have risen by about $4 a ton in the last two days to $299 a ton for December/January shipment so it seems possible that some of this business is being placed there.”


Brent oil prices drop by 2 percent as traders expect output rise after OPEC deal

Updated 39 sec ago
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Brent oil prices drop by 2 percent as traders expect output rise after OPEC deal

SINGAPORE: Brent crude oil prices fell by more than 2 percent early on Monday as traders factored in an expected output increase that was agreed at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Friday.
Brent crude futures, the international benchmark for oil prices, were at $73.90 per barrel at 0035 GMT, down 2.2 percent from their last close.
US West Texas Intermediate (WTI) crude futures were at $68.36 a barrel, down 0.3 percent, supported by a slight drop in US drilling activity.
Prices initially jumped after the deal was announced as it was not seen boosting supply by as much as some had expected.
OPEC and non-OPEC partners including Russia have since 2017 cut output by 1.8 million barrels per day (bpd) to tighten the market and prop up prices.
Largely because of unplanned disruptions in places like Venezuela and Angola, the group’s output has been below the targeted cuts, which it now says will be reversed by supply rises especially from OPEC leader Saudi Arabia.
Britain’s Barclays bank said OPEC’s and Russia’s commitments would take “the market from a -0.2 million bpd deficit in H2 2018 to a 0.2 million bpd surplus.”
Energy consultancy Wood Mackenzie said the agreement “represents a compromise between responding to consumer pressure and the need for oil-producing countries to maintain oil prices and prevent harming their economies.”
In the United States, US energy companies last week cut one oil rig, the first reduction in 12 weeks, taking the total rig count to 862, Baker Hughes said on Friday.
That put the rig count on track for its smallest monthly gain since declining by two rigs in March with just three rigs added so far in June, although the overall level remains just one rig short of the March 2015 high from the previous week.