Philippines feed wheat imports pegged at 4 million mt for 2021: DA

The total corn demand for feeding purpose is estimated at 10 million mt whereas the local corn production is only at 5 million mt, giving a deficit of 5 million mt, the memo said.

To make up for the deficit, the DA has allocated volumes of corn and feed wheat that can be imported during certain arrival months of the year.

Between January to February, 225,000 mt of corn and 600,000 mt of feed wheat is permitted to be imported.

Import volumes of 450,000 mt for corn and 1.2 million mt for feed wheat is allowed between May-June arrival while 350,000 mt of corn and 800,000 mt of feed wheat can be imported between July-August. Imports of 525,000 mt of corn and 1.4 million mt of feed wheat is permitted to arrive in the Philippines in the last two months of the year, according to the memo.

“They [the DA] actually prohibit import or arrival of imported corn and feed wheat in March,” said a buyer source, adding that the local corn harvest starts in March.

In addition to the feed wheat import restriction for March-April arrival, the current price levels and slow demand recovery from the African Swine Fever has kept Philippines’ feed buyers off the market recently.

Philippine pork production is forecast to turn negative in 2021 as “commercial operations have yet to regain confidence that they can safely produce and be permitted to market their pork products throughout the country so long as ASF and ASF-related restrictions remain widespread,” according to the US Department of Agriculture.

“Some estimates already put the commercial herd below three million heads,” the report added.

Moreover, wheat prices have rallied in recent weeks, following the surge in corn prices and expected increase in Russian wheat export tax.

“At current levels, we rather use local corn which is more economical [at] around 15.50 Peso per kilo,” the buyer source said.

Feed wheat in southeast Asia is currently quoted in the $300s/mt CFR for April-shipment. Late in the week ended Jan. 16, a 60,000 mt vessel of Australian Standard White wheat was booked at $302/mt CFR South Vietnam for April-shipment. A local trader said the vessel was booked for feeding purposes “as corn [prices] are too high.”