GENEVA: Switzerland’s ADM International has secured a tender to supply 50,000 tonnes of wheat to Bangladesh after submitting the lowest offer of $215.87 a tonne, said an official with the state grains buyer on Wednesday.
This was the second international wheat purchase tender issued by the Directorate General of Food since the current financial year started in July.
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Eight trading companies competed for the tender that was opened earlier this month.
The state buyer is buying a similar volume of wheat from Phoenix Commodities in its first tender this financial year as the trading firm came up with the lowest offer of $233.96 a tonne.
All prices include freight, insurance and discharge costs.
The origin of the wheat for the latest deal with ADM is not known yet, the official said, adding that Phoenix was supplying Russian wheat.
The state buyer received the lowest offer of $211.45 a tonne which was also made by ADM in a previous tender that was opened on Tuesday and is also the lowest among three tenders this financial year.
Benchmark U.S. wheat edged lower on Wednesday, falling for the first time in five sessions, although uncertainty surrounding Russia’s export policy kept prices near a one-month high.
The state grains buyer plans to ship in 950,000 tonnes of wheat in the year to June 2016, up from 300,000 tonnes the previous year.
It is seeking wheat with at least 12.5 percent protein and a minimum test weight of 76 kilos per hectolitre after a move to improve wheat quality.
The state buyer has rejected shipments of French wheat in recent months because of allegations the grain failed to match tender specifications.
The rejections came after the state buyer faced severe criticism for importing 200,000 tonnes of wheat from Brazil in tenders, of which some were found to be sub-standard.
In addition to the government, private traders also import about 3 million tonnes of wheat a year to help meet local demand of 4 million tonnes. Domestic output amounts to about 1 million tonnes.
