MANILA, Philippines - The Philippines will likely import this year around one million metric tons of feedwheat and up to 1.5 million MT of soybean meal, industry sources said yesterday.
Industry data show that contracted feedwheat imports for the first half of this year have reached 515,000 MT, while contracted soybean meal imports for the first quarter have totaled 522,894 MT.
Feedwheat is used as an alternative ingredient to corn in the production of animal feeds. Corn comprises up to 60 percent of animal feeds. Soybean meal, a source of protein in animal feeds, comprises up to 25 percent of animal feeds.
Following recent negative developments in the global wheat market, Philippine grains traders have taken early positions to secure feedwheat stocks.
Global wheat production for this year is projected to decrease five percent to 645 million MT following a 33 percent drop in Russian wheat production to 41.5 million MT due to a drought and excessively high temperatures that have seared some wheat farms.
Canada, also a big wheat producer, has experienced a severe winter, affecting it production which is expected to drop 14 percent to 23.2 million MT.
Australia, which have experienced unusually heavy floods, is also projecting lower wheat production particularly of milling wheat used to produce flour. However, Australia continues to export feedwheat which is basically used for the production of animal feed.
Wheat is a temperate climate grain and cannot be grown in the Philippines, hence the need to import milling wheat and feedwheat.
Soybeans, on the other hand, can be grown in the Philippines, but the sector is currently still too small to support local demand.
The Philippines, produces corn. This year, corn production is projected at 7.4 million MT, but demand is still much higher resulting in a continued shortfall.
Thus, depending on local production, some importation of corn is still expected.
However, competing demand for corn for fuel production, rather than for food, has driven up world prices.