- Jordan secures 50,000 tons of feed barley at $261.25/ton C&F for July 2024 delivery, providing a clear pricing benchmark.
- CHS wins tender with lowest offer, undercutting six major competitors by at least $3.39/ton and up to $12.70/ton versus the highest bid.
- Neutral to slightly bearish tone for Black Sea exporters as strong global competition and a wide bid range point to comfortable supply and potential pressure on FOB values.
Jordan Feed Barley Tender Result
Jordan’s Ministry of Industry and Trade (MIT) has finalized a purchase of approximately 50,000 tons of feed barley of any origin via a tender awarded on March 11. The contract was granted to CHS at a price of $261.25 per ton C&F, with shipment scheduled for the first half of July 2024.
The tender confirms steady demand for feed barley from Jordan and the broader North Africa–Middle East region. The “any origin” clause provides flexibility for the supplier on sourcing, but it also underscores the level of competition among global exporters.
Tender Participation and Pricing Structure
The tender attracted strong participation from seven major international grain operators, with CHS securing the award by offering the most competitive C&F price. The spread between the winning bid and the highest offer reached more than $12 per ton, indicating a wide range of price expectations among participants.
| Operator | Price ($/ton C&F) | Premium to Winner ($/ton) |
|---|---|---|
| CHS | 261.25 | – |
| Olam | 264.64 | +3.39 |
| Bunge | 266.00 | +4.75 |
| Ameropa | 272.90 | +11.65 |
| Buildcom | 272.27 | +11.02 |
| Dreyfus | 273.00 | +11.75 |
| Cargill | 273.95 | +12.70 |
The result highlights CHS’s price competitiveness, with its winning offer sitting well below several established global traders. The $12.70/ton difference between CHS and the highest offer from Cargill underscores the current divergence in risk assessment, freight assumptions, and margin expectations among exporters.
Market Impact and Regional Implications
The outcome is neutral to slightly bearish for Black Sea barley exporters. While the tender supports the view of ongoing import demand from Jordan and neighboring regions, the combination of “any origin” terms and tight price competition signals that global supply is adequate, if not comfortable.
For Black Sea origins, the winning price of $261.25/ton C&F sets a reference point for upcoming tenders. To remain competitive against EU, Australian, and South American origins under similar conditions, Black Sea suppliers may need to adjust FOB offers lower, especially if freight from alternative origins remains manageable and buyers continue to prioritize price over origin specificity.
In the near term, this deal is likely to cap upside in barley prices into the Middle East, as counterparties use the Jordan tender as a benchmark in negotiations. If further tenders clear at similar or lower levels, downside pressure on regional FOB quotations could intensify.
Source: Market Data
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