Philippines' buyer returns looking to buy Feb-July feed wheat

A private Philippines buyer has entered the market looking to buy optional origin feed wheat across a range of delivery options for arrival through February 25-July 14 period, trade sources have told Agricensus Tuesday.

The buyer issued a fresh tender looking for feed wheat from Australia, Black Sea, US, EU, or Canada in combined consignments of between 15,000 mt to 60,000 mt for loading during January 31 to 24 June timeframe depending on the origin.

Trade sources said the move was expected and comes amid high local prices for rival grains that could be used in the feed mix. 

“It's nothing surprising; they can only buy. Corn is too expensive locally,” a trader said, citing local domestic corn prices at around $380-$390/mt.

The tender is set to close on Thursday, December 9.

The tender also comes as traders and importers continue to eye the situation in Australia, where quality concerns have been reported amid ongoing rains that are both delaying harvest progress and affecting the protein content of what promises to be a huge crop.

Offers for high protein wheat are currently missing from the Australian market, while the gap between Australian standard white (ASW), with 9% protein and ASW with 8.5% protein is heard at around $10/mt in Western Australia.

Feed wheat was also heard offereded at lower levels with around the same discount.

At its previous Philippines’ tender, which closed on November 24, importer San Miguel booked two cargoes of Australian feed wheat at around $351-$353/mt CFR for February and March.

More information about the Philippines’ wheat purchases can be found in the Agricensus Tender Dashboard.