Philippines buys wheat again

27-10-2008 | |

The Philippines has resumed buying wheat for feed this month following a drop in global prices and could buy more next year, industry officials said.

The Southeast Asian nation has so far bought 120,000 tonnes of Ukrainian
wheat at $180-$240 per tonne, cost and freight, officials said.

The
country imported 393,000 tons of wheat for feed last year, mostly from China,
but stopped buying overseas until this month due to high prices.

“I
expect that there’ll be heavy imports by next year if the price drop continues,”
said an official representing feed millers.

The higher cost of yellow
corn in the domestic market is also encouraging importers to buy wheat overseas.
Both yellow corn and wheat can be used as animal feed. The landed cost of wheat
comes to about $0.18 per kilogram, compared to 24-26 cents/kg for corn, the
official said.

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