November 1, 2007
Philippines combines corn tenders as supplies tighten
Philippines' National Food Authority will likely reschedule the failed tender for 70,000 tonnes of imported yellow corn by the third week of November and may include an additional 200,000 tonnes in the same auction.
However, the Department of Agriculture has yet to approve the petition of the corn industry to import the additional 200,000 tonnes of corn, said NFA assistant administrator Conrad Ibañez.
The industry last week asked the department to combine the two separate tranches of 70,000 and 200,000 tonnes in one tender.
Earlier, the NFA said it would arrange for a tender on the first week of November but pushed it to a later date after the department failed to act on the petition to include the 200,000 tonnes of corn.
The NFA last week announced a failed bidding for the 70,000 tonnes of corn after traders called off the proceedings due to high prices.
The 70,000 tonnes were originally expected to arrive before the end of December and the 200,000 tonnes by February next year.
Initial estimates show that the price of imported corn will reach P15.70 (US$0.36) per kilogram against the local produce's P13.20 (US$0.30) per kg.
End-users expect a late December arrival for the 70,000 tonnes of corn. A tender by early November could still catch up with the industry's December requirement.
Corn traders said the industry was in a tight situation.
While industry estimates put Philippines corn shortfall at up to 1.8 million tonnes, the government estimates was only 500,000 tonnes.
The government earlier approved corn imports of 400,000 tonnes in two separate tranches of 200,000 tonnes each.
Corn shipment in Asia is becoming tighter as traditional exporters like China becomes increasingly reluctant to export corn due to rising demand from the processing and animal feed industry.
This week, a 110,000-tonne tender from The Korea Corn Processing Industry Association for non-genetically modified corn was passed over with no bidders.
