Philippines to buy feed wheat to beat higher corn prices

Feedmillers in the Philippines will import 40,000 tonnes of feed wheat before the year ends in anticipation of higher corn prices next year.

Both local and imported corn prices remain high and are expected to continue so into next year.

Local corn prices currently range from PHP10.50 (US$0.22) to PHP11.50 (US$0.24) per kg while supply is at a surplus. The international price of corn is at US$260 per tonne.

Feedmillers deemed global corn prices as uncompetitive, thus they are opting for the cheaper feed wheat or tapioca.

The current local price of feed wheat ranges from PHP12 (US$0.25) to PHP12.5 (US$0.26) per kg, said Roger Navarro of the Philippine Maize Federation.

Feedmillers currently enjoy zero tariff on their feed wheat imports, which hurts local corn farmers. The zero tariff was extended up to the end of December, but is unlikely to get a further extension next year as the Philippine Association of Flour Millers (PAFMIL) has informed the government that it can restore the 3% duty on milling wheat as prices of imported wheat have gone down.

Navarro fears that the new feed wheat imports would bring down prices of local corn again, expressing concerns that could be the objective of importing feed wheat.