By Luzi Ann Javier
Jan. 13 (Bloomberg) -- The Philippines, Southeast Asia’s second-biggest wheat buyer, may boost purchases of the cereal used in animal feeds after domestic prices of corn more than doubled, an industry executive said.
Pork producers may buy at least 500,000 metric tons of feed wheat by June, National Federation of Hog Farmers Inc. Chairman Rene Elaria said in a phone interview from Manila. That compares with 90,000 tons bought in November, the only month when the nation imported the grain in 2008, he said.
Domestic prices of yellow corn, which can be used in place of feed wheat, has more than doubled to 25 pesos (53 cents) per kilogram since December, Elaria said. That compares with a range of 10 pesos-12 pesos per kilogram paid by Philippine buyers for imported feed wheat, including freight and the cost of delivery to the warehouse, he said.
Increased imports by the Philippines may help support prices that fell after the U.S. Department of Agriculture yesterday said global stockpiles will increase faster than estimated in December.
Wheat for March delivery declined 1.4 percent to $5.62 a bushel in after-hours trading on the Chicago Board of Trade at 4:44 p.m. Singapore time, extending yesterday’s 9.5 percent loss.
The inventory will rise to 148 million tons this year, from 119 million tons a year ago, the USDA said in a report yesterday. That compares with a 147 million ton estimate in December.
The USDA forecast yesterday that Philippine imports of wheat, flour and other wheat-related products will be unchanged at 2.8 million tons.
Agriculture Assistant Secretary Dennis Araullo said millers had already ordered 120,000 tons of feed wheat from Ukraine for delivery this month and the next, to narrow the gap in corn supply.
To contact the reporter for this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
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