December 19, 2008

 

Philippine feedmillers buy 90,000 tonnes Brazilian corn

 
 

Philippine feedmillers bought 90,000 tonnes of Brazilian corn this month following a lower-than-expected domestic output of the yellow grain in 2008, an industry official said Friday (December 19).

 

An initial volume of 55,000 tonnes were contracted early this month, followed by a most recent 35,000-ton deal, said the official, declining to be named. He added both shipments are for arrival in January.

 
At 35 percent tariff, the imports will have a landed price of PHP13 a kilogram, substantially lower than the prevailing domestic prices of PHP16/kg, the official said.

 

"Corn supply in the local market is limited even at a price of PHP16/kg, leaving us no option but to seek overseas supply," the official said.

 

The tightness in local supply follows a production estimate of 6.9 million tonnes for 2008, much lower than the agriculture department's s output target of 7.3 million tonnes.

 

The fall in output is attributed mainly to the high cost of input, mostly petroleum-based fertilizers.

 

However, the department had earlier said Philippine corn output in the first three months of 2009 is projected to improve 3 percent to 2.05 million tonnes on a rise in acreage as farmers anticipate favourable weather conditions.

 

Corn is a major component in livestock and poultry feeds.

 

US$1 = P46.15(December 19)