Philippines: Grain and Feed Update

Philippine economic planners expect the gross domestic product to contract by 2.0 to 3.4 percent in 2020 due to the strict quarantine conditions in response to the coronavirus disease 2019 (COVID-19) pandemic. While some parts of the country are slowly lifting restrictions, a 13 percent contraction in feed wheat demand as a result of the continued African Swine Fever outbreak will bring down overall MY 20/21 wheat imports from 7.2 million to 7.0 million tons. Corn imports, however, will increase from 500,000 to 600,000 tons due to firm feed demand from a steadily expanding broiler industry and increasing industrial food applications (i.e., starch for sweeteners). A government-to-government auction for 300,000 tons of rice was held on June 8, 2020 with bids coming from India, Vietnam, Thailand, and Myanmar, but the winning bids have yet to be awarded. Post concurs with the official USDA grain estimates.

Philippines: Grain and Feed Update