Philippines wheat imports higher at 7.2 million MT

The Philippines is expected to post a record-high wheat importation this year at 7.2 million metric tons amid continuous increasing consumption following smaller corn output.

The latest report of the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) showed this year’s importation is 20.4 percent higher than the 2018 level of 5.98 million MT.

The USDA hiked this year’s projection from the seven million MT forecasted in April.

“There are expectations of stronger feed and food use in the Philippines,” USDA said.

Latest import data showed wheat imports in the January to May period climbed 25 percent to 740,133 MT from 591,039 MT in the same period last year.

Wheat imports for the Philippines have more than doubled over the last decade, with a large surge occurring this year boosted by reduced supplies of other grains as typhoons cut domestic corn and rice production.

In fact, Southeast Asia is seen as the top wheat importing region for the first time amid a strong demand for the commodity in the Philippines and Indonesia.

The ASEAN will lead global wheat importation this year and next year as demand in the region continues to trend higher based on longer-term shifts in consumption from rice to wheat as diets diversify.

Meanwhile, global production is lowered this month as smaller crops in Australia, Canada, the European Union, Russia, and Ukraine more than offset a larger US crop.

Exports are projected lower for Australia, Russia, and Ukraine, creating further opportunities for the EU and the US. The US season-average farm price is up $0.10 per bushel to $5.20.

There is no commercial wheat production in the Philippines and wheat is the main raw material for flour and feeds.

Bakery products comprise roughly 50 percent of overall milling wheat consumption while the other half of milling wheat demand is for producing noodles, cookies and crackers, and pasta.

The Philippines sources 95 percent of its wheat requirements from the US. There are 20 flour mills in the country with an aggregate milling capacity of over five million MT.

philstar.com