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.
"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)