July 1, 2011

Philippines resumes wheat purchases after hiatus

Feed millers in the Philippines have purchased 31,000 tonnes of Australian feed wheat for September shipment at US$280.40/tonne, basis cost and freight.

The Philippines resumed feed wheat purchases after a long hiatus, as it had covered its needs for the first half of the year well in advance, trading executives said Thursday (Jun 30).

In December, the Philippines purchased five cargoes totalling 255,000 tonnes of Australian feed wheat at prices between US$291 to US$295/tonne, C&F, for shipment in the March-May period, and followed it up with more imports at similar prices.

Australian wheat prices are now under downward pressure due to expectations of a second successive record crop this year. Optional origin sales of 220,000 tonnes of feed wheat to South Korea in a tender Wednesday (Jun 29) were at US$273.90/ton, C&F for end-October and November arrival, and are likely to be sourced from Australia.