Bangladesh tenders to import 50,000 tonnes of wheat

DHAKA: Bangladesh's state grains buyer issued a tender on Wednesday to import 50,000 tonnes of milling wheat in an effort to boost reserves, a procurement official said.

The deadline to submit offers is March 13, with validity up to March 27. Wheat with 12.5 percent protein content was sought for shipment 40 days after contract signing.

"I think the latest tender confirms strong import demand from Bangladesh which I think is likely to continue in coming months," one European trader said. "It is also a good time to be in the global market as a buyer with prices so low."

U.S. wheat futures fell on Tuesday to the lowest in 10 months as cheaper exports from producers including Russia weighed on demand for U.S. supplies.

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

The strong demand for wheat reflects a shift in consumers' diet preferences towards bread as well as increasing use of wheat as a substitute for more expensive rice, FAO said.

Trading house Agrocorp won a previous tender in February to supply 50,000 tonnes of wheat to Bangladesh after submitting the lowest offer of $294.95 a tonne CIF liner out.