Asian grains buyers eye more French wheat after Bangladesh tender

Asian buyers are looking to import more French wheat after Bangladesh made one of its biggest purchases from the European country since 2000/01 earlier this month, taking 60,000 tonnes. Australian wheat prices were mostly steady from last week even as the country faced competition from Germany in higher quality milling wheat and France in lower grades, traders said.
"Bangladesh has another tender which will most probably be awarded to French wheat," said one Singapore-based trader. "For lower quality, France is the cheapest origin." In the last tender, Bangladeshi buyer paid $256 a tonne, including cost and freight, for French wheat. The deal for 60,000 tonnes would be the largest shipment to the Asian country since 2000/01.
Bangladesh's state grains buyer has issued a new international tender to import 100,000 tonnes of wheat as its extensive import programme continues. The tender closes on March 1 and offers must remain valid until March 12. Traders said the Philippines, Thailand and South Korea could be in for French wheat cargoes. "Some of the feed wheat purchased by millers in the Philippines is of optional origin but sellers are most likely to send French cargoes," a second trader said.
France, the largest wheat exporter in the European Union, rarely ships grain to far-away Asian markets. But heavy rain led to poorer quality wheat this season, which has curbed French sales to bread wheat markets overseas and shifted some exports towards animal-feed markets. A low rate of the euro against the dollar has also boosted French wheat's competitiveness in international markets.
Australian wheat prices were largely unchanged this week. Australian Prime wheat was quoted at $240 a tonne free on board, while standard wheat was offered at around $245 and high-protein hard wheat at $250. US wheat futures have shed 0.6 percent this week, the market's seventh weekly loss in two months. "We have been unable to win much business for milling wheat as Australian prime wheat is much more expensive than similar quality of German wheat."
In the feed grain market, corn buyers remained on the sidelines after having covered supplies for the next three to four months, traders said. The Korea Feed Association purchased up to 60,000 tonnes of optional-origin corn in a tender that closed on Thursday. It rejected all offers and made no purchase of 30,000 tonnes of feed wheat also sought in the tender, trader said.