August 1, 2008
 

Philippine wheat import prices drop US$80 tonne/month

   
  

The Philippines is paying about $80 a tonne less for wheat imports from the US and Canada compared to a month ago due to the recent slide in global prices, Teddy Deocares, a trader with Manila-based Pilmico Flour Mills, said Thursday.

 

Global wheat prices are declining on expectations of a record harvest this fall. Chicago Board of Trade wheat contracts have fallen 34.5 percent since the high of $12.45/bushel touched on March 13.
 

The landed cost of US soft wheat in the Philippines has declined to $390/tonne, on a cost and freight basis, while Canadian spring wheat is arriving at around $470/tonne.

 

Still, the decline won't boost demand because prices are higher compared to a year ago. The high prices have led to a decline in demand, Deocares said.
 

"As of date, wheat imports are down 5 percent on year. I think maybe the Philippines will end up with 1.9 million tonnes wheat import this year compared with 2 million tonnes last year," he said.

 

Deocares also said any further fall in global prices may not encourage traders to import more, as most flour millers have already finished their annual wheat purchase.
   

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