October 28, 2008

The Philippines has resumed buying wheat for feed this month due to a drop in global prices, according to industry officials.

The country has so far imported 120,000 tonnes of Ukrainian wheat at US$180-240 per tonne, officials said, adding that the Philippines is likely to buy more next year.

Last year, the Philippines imported 393,000 tonnes of wheat for feed, with most of it from China. However, imports were stopped due to high prices.

An official representing feedmillers said imports are expected to be heavy next year if the price drop continues.

The higher cost of corn in the domestic market is also encouraging importers to buy wheat. The landed cost of wheat is about US$0.18 per kg, compared US$0.24 to US$0.26 per kg for corn, the official said.