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  • Dec 28th, 2012
  • Comments Off on Bangladesh bids for 50,000 tonnes of wheat
Bangladesh's state-run grains buyer issued a tender on Thursday to import 50,000 tonnes of wheat to boost stocks, a procurement official said, taking advantage of low global grain prices. The deadline to submit offers is January 10, with validity up to January 21 and the wheat is to be shipped within 40 days of signing the contract. This is the sixth tender issued by the state grain purchasing authority, which has said it plans to import a total of 800,000 tonnes of wheat in the year to June 2013.

In its tender for 50,000 tonnes which closed on December 18, the lowest offer was $346.45 a tonne including freight, insurance and other expenses, which was down from the lowest offers made in the previous three tenders. The offer from South Korea's Samjin was submitted to the country's cabinet purchase committee for approval. Wheat edged higher on Thursday after sliding to a six-month low on poor US exports and bearish technical signals.

March wheat rose 0.3 percent to $7.76-1/2 a bushel, after dropping to $7.71-1/4 a bushel earlier on Thursday, the lowest since early July. Apart from the government, private traders and millers import 3 million to 3.5 million tonnes of wheat annually to meet demand as domestic wheat production stagnated at nearly 1 million tonnes. Rice is the main staple for Bangladesh, home to 160 million people, but wheat consumption is also rising due to steady economic growth and lifestyle changes. Overall, the south Asian country's food supply is in a better state at the moment due to plentiful rice stocks.

Copyright Reuters, 2012


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