Bangladesh gets offers in 50,000 tonne wheat tender

HAMBURG/DHAKA: Bangladesh's state grains buyer received the lowest offer of $267.98 a tonne C&F liner out in an international tender to purchase 50,000 tonnes of wheat which closed on Wednesday, traders and official sources said.

No purchase has yet been reported and the offers are still being considered. The lowest offer was submitted by trading house Agrocorp. The liner out price includes shipping, insurance and ship unloading costs.

Three other offers were submitted in the tender all on the same C&F liner out terms, traders said.

Trading house Phoenix offered $274.47 a tonne, Swiss Singapore Overseas offered $275.92 and Aston offered $277.00.

Wheat with 12.5 percent protein content was sought for shipment 40 days after the contract signing and the grain can be supplied from any worldwide origin except Israel.

Bangladesh has been highly active in the international wheat market this year with a large import requirement driving demand.

Bangladesh's last reported wheat tender was on March 25 when the country received the lowest offer of $267.10 a tonne C&F liner out.

A report from the United Nation's Food and Agriculture Organisation (FAO) in December estimated Bangladesh's wheat import requirements in the 2018/19 season at a record high of around 6 million tonnes, some 34 percent above the previous five-year average following steady increases since 2012/13.

The strong demand for wheat reflects a shift in consumer preferences towards bread as well as increasing use of wheat as a substitute for more expensive rice by Bangladesh's growing population.