Jordan tenders to buy 100,000 tonnes of feed barley

01 May, 2007

Jordan's state grains buyer has issued a tender to purchase 100,000 tonnes of feed barley, European traders said on Monday. Some 50,000 tonnes is for shipment in the first half of June and 50,000 tonnes in the second half of June. Origin is open.
Bidding deadline is May 16. Last week Jordan rejected all bids as too high in previous barley tender, the third barley tender in succession that all bids were rejected.
In its last international barley purchase on January 31, Jordan bought 100,000 tonnes at $238 a tonne c&f. since then international shipping costs have increased sharply. The Baltic Exchange's Panama freight index for bulk carriers to transport grains and metal ores, closed at 5,831 points on Friday, close to its 6,110 point all-time high in 2004 and up from under 4,000 points at the end of January this year.
This surge in shipping costs has made grains import for Middle Eastern countries considerably more expensive and several have delayed tenders. Shipping prices have risen because of continuing strong global commodity demand, especially from China.

Read Comments