November 21, 2005

Philippines buy wheat from China as local corn supply falls
 

The Philippine Association of Feed Millers (PAFMI) has purchased 35,000 tonnes of wheat at US$134/tonne, C&F, from China to boost feed raw materials as the local supply of quality corn dwindles.

Wheat imports for 2005 may reach 600,000 tonnes, up from the 500,000 tonnes in 2004 as wheat is increasingly used as a substitute for corn, given with latter's poor output this year partially due to the absence of post-harvest facilities.

Corn output were also hit by a drought brought on by a mild El Niño early this year, while in the second half of the year, another drought curbed corn production in Cagayan Valley, a major corn-producing area.

Local corn supplies this year is likely to drop to 5.1 million tonnes this year, from the 5.4 million tonnes last year.