Bangladesh gets offers in 50,000 tonne wheat tender

DHAKA: Bangladesh's state grains buyer received the lowest offer of $268.92 a tonne C&F liner out in an international tender to purchase and import 50,000 tonnes of wheat, sources in the purchasing agency and traders said on Wednesday.

No purchase has yet been reported and the offers are still being considered.

The offer was submitted by trading house Agrocorp International and was for Russian-origin wheat, they said. The price includes shipping, insurance and ship unloading costs.

Four other offers were submitted in the tender all on the same C&F liner out terms. Trading house J.K International offered $274.45 a tonne for wheat which can be sourced optionally from Russia, Ukraine, the United States or Canada.

Swiss Singapore Overseas offered $273.39 a tonne for wheat sourced optionally from countries including Russia, Argentina, Bulgaria, Romania or the United States.

Aston offered $281.40 a tonne for Russian wheat and Phoenix Global offered $282.95 for wheat from sources including Russia, Ukraine, the European Union, United States or Canada.

All the offers were for the full 50,000 tonnes.

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 active in the international wheat market this year.

In its last tender for 50,000 tonnes reported on March 4, Bangladesh's state grains buyer received the lowest offer of $271.75 a tonne C&F liner out. Bangladesh has another tender seeking 50,000 tonnes closing on March 25.

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, the FAO said.