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PHL stocks rebound on positive remittances data

By Revin Mikhael D. Ochave, Reporter

LOCAL SHARES bounced back on Wednesday as investor sentiment improved after the release of central bank data showing higher remittances from Filipinos abroad in October.

The bellwether Philippine Stock Exchange index (PSEi) improved 71.97 points or 0.99% to close at 7,299.70, while the broader all shares index rose 29.44 points or 0.68% to end at 4,350.45.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the market improved as sentiment got a boost from latest central bank data on cash remittances.

Data released by the Bangko Sentral ng Pilipinas on Tuesday showed cash remittances coursed through bank channels rose 2.9% to $2.747 billion from $2.671 billion a year ago. This is the second straight month of year-on-year growth of remittances after the 9.3% recorded in September.

Meanwhile, cash remittances for the 10 months to October slipped 0.9% to $24.633 billion from $24.858 billion in the same period of 2019.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun echoed Mr. Tantiangco and said the growth in remittances indicates a return to normalcy after the economic chaos brought about by the pandemic this year.

“The market started the day slightly lower, but then quickly recovered and then moved higher throughout the session. Last-minute buying pushed it to close at its higher level for the day, just a few points shy of its 10-month high, which it hit last Monday,” Mr. Mangun said in an e-mail.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the local bourse rose as investors felt hopeful on the positive developments in coronavirus disease 2019 (COVID-19) vaccines.

Reuters reported that the United States is gearing to expand its dissemination of COVID-19 vaccines made by Pfizer, Inc. and BioNTech to more distribution centers on Tuesday, in efforts to curb the spread of the virus.

Most sectoral indices at the PSE closed higher on Wednesday, except for services, which fell 1.44 points or 0.09% to 1,527.12.

Meanwhile, mining and oil jumped 160.34 points or 1.7% to 9,562.43; holding firms climbed 102.42 points or 1.38% to 7,510.94; property increased 50.05 points or 1.36% to 3,728.01; industrials went up 70.59 points or 0.74% to 9,529.73; and financials gained 3.29 points or 0.21% to 1,514.31.

Value turnover on Wednesday reached P9.31 billion with 117.64 billion switching hands, lower than the P10.13 billion with 63.91 billion issues in the previous session.

Advancers outnumbered decliners, 133 against 90, while 47 names ended unchanged.

Net foreign selling amounted to P501.32 million, lower than the P615.94 million on Tuesday.

“Resistance may be drawn at 7,500, with nearest support at 6,700,” Timson Securities’ Mr. Pangan said.

Peso inches sideways as investors await BSP decision

THE PESO barely moved against the greenback on Wednesday as investors waited on the sidelines for the policy decision of the Bangko Sentral ng Pilipinas (BSP) and following the latest uptick in oil prices.

The local unit closed at P48.066 a dollar, depreciating from its Tuesday finish of P40.063, data from the Bankers Association of the Philippines showed.

The peso traded within a tight range, opening the session at P48.06 versus the dollar. Its weakest showing was its close of P48.066 while its strongest level was at P48.05 against the greenback.

Dollars exchanged inched up to $499.86 million on Wednesday from the $490.65 million seen on Tuesday.

A trader the peso’s minimal movement on Wednesday came as the market awaits the policy decision of the BSP this Thursday.

The BSP is widely expected to retain the current key policy rates, based on a BusinessWorld poll held last week where 15 analysts said the overnight reverse repurchase rate, currently at a record low of two percent, will remain untouched.

Aside from the BSP policy meeting, the market also tracked the latest uptick in oil prices, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Reuters reported that the price of Brent crude rose by 47 cents or 0.9% to $50.76 per barrel while that of the US West Texas Intermediate crude gained 1.3% or 63 cents to $47.62 a barrel on Tuesday.

The trader said trading will remain cautious today as they await the central bank’s policy guidance for 2021.

The trader expects the exchange rate to move around the P48 to P48.10 levels while Mr. Ricafort gave a slightly higher forecast range of P48.02 to P48.12 per dollar. — with Reuters

Philippine COVID-19 cases nearing 453,000

REUTERS

THE DEPARTMENT of Health (DoH) reported 1,156 coronavirus infections on Wednesday, bringing the total to 452,988.

The death toll reached 8,833 after 21 more patients died, while recoveries increased  by 425 to 419,282, it said in a bulletin.

There were 24,873 active cases, 84.7% of which were mild, 6.7% did not show symptoms, 5.6% were critical, 2.8% were severe and 0.3% were moderate.

Davao City reported the highest number of cases at 126, followed by Quezon City at 66, Rizal at 64, Bulacan at 56 and Manila at 38.

DoH said seven duplicates had been removed from the tally, while seven recovered cases were reclassified as deaths. Five laboratories failed to submit their data on Dec. 15, it added.

The coronavirus has sickened about 73.8 million and killed 1.6 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 51.8 million people have recovered, it said.

Meanwhile, Health Secretary Francisco T. Duque III refuted a social media post by Foreign Affairs Secretary Teodoro Locsin, Jr. that someone had bungled a deal to buy 10 million vaccine doses from US drug maker Pfizer.

“There’s no such thing as dropping the ball,” he told an online news briefing. “The negotiations are ongoing.”

Mr. Locsin on Tuesday tweeted that he and Philippine Ambassador to the US Jose Manuel Romualdez had secured a deal with Pfizer for the delivery of 10 million vaccine doses by January financed by the World Bank and Asian Development Bank “but somebody dropped the ball.”

Mr. Duque said his office was advised on Sept. 24 to review the deal, adding that he signed it on Oct. 20.

He said he reviewed the papers and sought the advice of lawyers for potentially onerous provisions in the agreement.

“I wanted to make sure that the provisions were not onerous or disadvantageous to the government,” he said in mixed English and Filipino.

EMERGENCY USE
The Pfizer-BioNTech COVID-19 vaccine had not been approved or licensed by the US Food and Drug Administration (FDA), but was authorized for emergency use by people 16 years and older.

Jordan on Monday said it had approved emergency use of the Pfizer-BioNTech coronavirus vaccine, as the US kicked off a mass vaccination drive, according to news wire AFP.

Jordan’s green light for the Pfizer vaccine followed those of Bahrain and Saudi Arabia and came six days after Britain launched the world’s first mass inoculation campaign using the vaccine.

Vaccine czar Carlito Galvez, Jr. on Monday said the government was expecting to finalize the vaccine procurement deal with Chinese drug maker Sinovac Biotech Ltd. this week.

He added that negotiations continue so the government could meet its March 2021 target to get the vaccines. The government also expects to get a second tranche of vaccines in the latter part of 2021.

Sinovac is the government’s top pick for vaccine orders for its mass immunization program that will start next year. The government seeks to immunize 20 million Filipinos yearly in the next three years.

The government is also in talks with nine more vaccine developers. Other than Sinovac, the Philippines is looking to import vaccines from two other Chinese vaccine makers that are in advanced stages of clinical trials — China National Pharmaceutical Group Co., Ltd. (Sinopharm) and CanSino Biologics.

The private sector, government and UK-based drug maker AstraZeneca have signed a deal for the purchase of 2.6 million coronavirus vaccine doses.

Joey A. Concepcion, presidential adviser for entrepreneurship, told an online briefing last month that half of the vaccines would be given to the private sector and the other half would be donated to the government.

The vaccines were expected to arrive in May or June, he said at that time.

DoH earlier said five participants in the coronavirus clinical trials of the Japanese anti-flu drug Avigan have completed their trials.

Sixteen participants had been recruited as of Dec. 7, nine of whom were ongoing and two withdrew. The clinical trials for Avigan started on Nov. 20.

Japan in April said it would send the vaccine made by Fujifilm Toyama Chemical Co., Ltd. to 38 countries, including the Philippines after clinical trials. — Vann Marlo M. Villegas

4 million families went hungry in past three months — SWS poll

ABOUT 4 million Filipino families went hungry at least once in the past three months, according to the latest Social Weather Stations (SWS) poll.

The November hunger rate of 16% was 15 points below the record 30.7% or 7.6 million families who went hungry in the September SWS poll, it said in an emailed statement.

Still, this was double the pre-pandemic rate of 8.8% or about 2.1 million families in December 2019.

SWS interviewed 1,500 adults on Nov. 21 to 25 for the poll, which had an error margin of ±2.5.

SWS on Monday said almost half of Filipino families consider themselves poor.

It said 48% of families rated themselves poor and 36% said they were borderline poor. Only 16% felt they were not poor.

The November poll was the first time the pollster did face-to-face interviews since the coronavirus pandemic struck. The self-rated poverty poll could not be done in SWS mobile phone surveys earlier this year.

In December 2019, the last time that poll was done, there were 54% that felt poor, 23% felt borderline poor and 23% felt they were not poor. — NPA

ICC probe of Duterte drug war against self-rule, says Palace

THE INTERNATIONAL Criminal Court (ICC) would violate Philippine sovereignty if it sends envoys to probe President Rodrigo R. Duterte’s deadly drug war, according to the presidential palace.

“Only local institutions have jurisdiction to try anyone, including the President, for any crimes that happened here in our country,” presidential spokesman Harry L. Roque told DZBB radio on Wednesday in Filipino.

The ICC on Tuesday said there was reasonable basis to believe that crimes against humanity had been committed in connection with Mr. Duterte’s anti-drug campaign.

Those crimes including murder, torture, infliction of serious physical injury and mental harm took place between July 1, 2016 and March 16, 2019, Chief Prosecutor Fatou Bensouda’s office said in its annual report.

The report cited allegations that some people had been subject to “serious ill-treatment and abuses” before being killed by authorities and other unidentified assailants.

Most of the victims of the alleged crimes had been suspected drug pushers from poor neighborhoods, it said.

A final decision on a formal ICC probe could come in the first half of next year, according to the report.

Salvador S. Panelo, the President’s chief legal adviser, rejected the ICC report.

“The Philippine government does not sponsor any unlawful acts that may result in any killing or violent activity,” he said in a statement. “Nor does it allow any widespread or systematic attack directed against any civilian population.”

The ICC prosecutor started a preliminary probe into the killings of thousands of suspected drug users and peddlers in the Philippines in February 2018. Some of these were killed by police for allegedly resisting arrest or gunned down by law enforcers disguised as vigilantes.

Mr. Roque earlier dismissed the report, saying the ICC does not have jurisdiction over the Philippines after it withdrew from the body last year.

Mr. Duterte, who assumed office in 2016, had promised a relentless war against drugs, making it a major campaign platform.

In 2017, he told police officers to “shoot and kill” drug suspects. “I will kill more if only to get rid of drugs,” he said at that time.

The Commission on Human Rights in 2019 placed the death toll from the drug war at more than 27,000. — Gillian M. Cortez

Nationwide round-up (12/16/20)

House to vaccinate own workers

THE House of Representatives will allot at least P50 million for the vaccination of more than 2,000 workers and accredited journalists covering the chamber against the coronavirus, Speaker Lord Allan Q. Velasco said on Wednesday.

Five immediate family members of House employees and accredited media will be included in the House’s mass vaccination program, he told reporters in a Viber group message.

“This is for the normalcy of business,” he said. “We just want the legislative mill to be grinding.” Mr. Velasco said the House would most probably get the vaccines from China’s Sinovac Biotech Ltd. or British manufacturer AstraZeneca Plc.

Lawmakers would not be prioritized in the vaccination drive, Mr. Velasco said, adding that only the “remaining doses” would be used for them.

Funding would come from the House’s internal budget for next year.

Data from the House showed that 191 people, including lawmakers and staff, have been infected with the coronavirus disease 2019 (COVID-19) virus.

The government lists employees of agencies and local government units as the seventh group that would be prioritized for the mass vaccination, after health workers, senior citizens, the poor, uniformed personnel and school workers. — Kyle Aristophere T. Atienza

OFW bill will have to wait

SENATE action on a proposed Department of Overseas Filipinos will be tackled in January, a Senate President Vicente C. Sotto III said on Wednesday.

He told reporters it would be impossible to take up the measure because the chamber is set to adjourn for a month-long break until Jan. 17.

This comes after President Rodrigo R. Duterte on Tuesday certified Senate Bill 1949, which seeks to create the agency, as urgent.

The bill will streamline government response to concerns of migrant Filipino workers and their families. It will also assume functions of the Labor department and Overseas Workers Welfare Administration (OWWA) relating to migrant workers. The measure is being pushed in the chamber after the coronavirus pandemic led to the displacement of Filipino workers overseas.

In its last count, the Department of Foreign Affairs (DFA) reported that more than 300,000 Filipinos have come home since February.

The Senate labor committee headed by Senator Emmanuel Joel J. Villanueva deferred hearings on the bill over bureaucracy issues.

Senator Franklin M. Drilon earlier said the government rightsizing bill should first be tackled to address the bloated bureaucracy. — Charmaine A. Tadalan

Bill on disaster budgets passed

A HOUSE of Representatives committee on Wednesday endorsed a bill that seeks to extend the validity of appropriations for projects meant to ease the effects of disasters.

The House disaster resilience committee approved House Bill 8076, which will authorize the President to extend the validity to as long as two years.

This will ensure that recovery programs during national emergencies will get the budgets they need.

The bill described a national emergency as any event that threatens national security.

Projects must be awarded after a competitive public bidding, according to a copy of the bill.

No project should be implemented through a negotiated contract “except those authorized by the President to respond to a national emergency subject to rules and conditions.” — Kyle Aristophere T. Atienza

Ambassador appointments OK’d

THE COMMISSION on Appointments (CA) confirmed the appointment of two Philippine ambassadors on Wednesday.

The body during a session confirmed the nomination of Leslie J. Baja as the Philippine ambassador to the Kingdom of Morocco and of Raymond R. Balatbat as the Philippine ambassador to Lebanon.

Mr. Baja also has concurrent jurisdiction over the Republic of Guinea, Republic of Mali, Islamic Republic of Mauritania and Republic of Senegal.

Aside from the two envoys, the appointment body also approved the ad interim appointment of Leandro Luiz S. Manantan as a foreign service officer. — Kyle Aristophere T. Atienza

Regional Updates (12/16/20)

Red tide warning lifted

THE BUREAU of Fisheries and Aquatic Resources (BFAR) has lifted the red tide warning for Inner Malampaya Sound in Palawan, Matarinao Bay in Eastern Samar and San Pedro Bay in Western Samar.

Consumers may now eat shellfish from these areas, the agency said in a bulletin on Wednesday.

The red tide warning stays for Bataan province, particularly the areas of Mariveles, Limay, Orion, Pilar, Balanga, Hermosa, Orani, Abucay, and Samal; Honda and Puerto Princesa bays in Palawan; Milagros in Masbate; Sorsogon Bay in Sorsogon; Dauis and Tagbilaran City in Bohol; and Tambobo Bay in Negros Oriental. Also affected by red tide are Daram Island, Zumarraga, Cambatutay, Irong-irong, Maqueda, and Villareal Bays in Western Samar; Calubian, Cancabato Bay and Carigara Bay in Leyte; Biliran Island; Guiuan in Eastern Samar; Balite Bay in Davao Oriental; and Lianga Bay and Hinatuan in Surigao del Sur.

All types of shellfish and acetes or alamang from these areas are not safe for human consumption, BFAR said. Other marine species may be eaten as long as these are properly handled and prepared. — Revin Mikhael D. Ochave

NCR barred from pilot classes

SCHOOLS in the National Capital Region (NCR) won’t take part in the pilot run for face-to-face classes in January since it is still under a general lockdown, according to the Department of Education (DepEd).

Schools nominated to the pilot test should at least be in areas under a modified general community quarantine, Malcolm S. Garma, director of the agency in the National Capital Region, told an online news briefing on Wednesday.

More than a thousand out of 61,000 schools in the country have been nominated to take part in the pilot run, Education Secretary Leonor Briones told the same briefing.

“It’s not mandatory,” she said in Filipino. “It’s going to be voluntary, with the consent of parents.”

Ms. Briones said parents’ reactions to the plan were mixed. She said the government would ensure that students and teachers who will volunteer in the program would be safe.

The face-to-face classes will run from Jan. 11 to 23. President Rodrigo R. Duterte in June said he would not allow physical classes in the absence of a coronavirus vaccine. — Gillian M. Cortez

Bayanihan III bill worth P485B filed in Senate

A THIRD stimulus package worth P485 billion to help the economy recover from the pandemic and the late-year typhoons has been filed in the Senate.

The Bayanihan III stimulus package formally known as Senate Bill (SB) No. 1953 or the proposed Bayanihan to Rebuild as One Act, does not contain a grant of special powers to President Rodrigo R. Duterte, unlike the first and second rounds of stimulus.

The Bayanihan to Heal as One Act, or Republic Act No. 11469, and the Bayanihan to Recover as One Act, RA 11494, respectively authorized packages of P375 billion, and P140 billion with P25.5 billion in standby funding.

“Notwithstanding these measures which cushion the socio-economic impact of the pandemic, our agony is not yet over as three typhoons which hit the Philippines in October and November 2020 had exacerbated the disastrous impact of COVID-19 (coronavirus disease 2019),” Senator Ralph G. Recto said in the bill’s explanatory note.

He said SB 1953 is the counterpart measure of House Bill No. 8031, written by Marikina Representative Stella Luz A. Quimbo.

The bill allocates P55 billion for COVID-19 vaccines and other medications and another P20 billion for vaccine storage. At present, a total of P82 billion in programmed and unprogrammed funds has been allotted for the vaccine rollout.

It will also provide an additional P35 billion to hire contact tracers, fund testing and treatment, and provide hazard pay.

Some P100 billion will be earmarked each for worker subsidies and capacity-building in hard-hit sectors; P70 billion in cash assistance to households under the social amelioration program, and P20 billion for households affected by the typhoons.

Some P30 billion will be provided for displaced workers, P50 billion for the rehabilitation of typhoon-hit areas, and a P5-billion internet allowance for teachers and students via the Department of Education and Commission on Higher Education.

The government placed Luzon on lockdown in mid-March to contain the spread of the virus. Quarantine rules remain in force at varying levels of severity across the country.

The economy contracted 10% in the first nine months, which could worsen due to the impact of five typhoons in October and November. The National Economic and Development Authority has estimated that the storms caused P90 billion worth of output to be lost. — Charmaine A. Tadalan

Asia-Pacific job losses during pandemic estimated at over 81M

THE International Labor Organization (ILO) said over 81 million jobs were lost in the Asia-Pacific region as countries struggled to maintain employment levels during the pandemic.

The ILO said Wednesday in its report, Asia–Pacific Employment and Social Outlook 2020: Navigating the crisis towards a human-centred future of work that the unemployment rate in the region could rise to 5.2-5.7% in 2020 from 4.4% in 2019.

“Using available Labor Force Survey data and additional input data in a nowcasting model, the report estimates a resulting jobs gap in 2020 at the regional level of 81 million as a result of the crisis,” the ILO said.

The working hours lost metric — an indicator of workers who idled or relegated to part-time employment — also remained weak this year, falling 15.2% in the second quarter and 10.7% in the third quarter.

The ILO said the hours lost in the second quarter was equivalent to 265 million full-time jobs.

Income also deteriorated in the region, the ILO said, noting: “With fewer paid hours of work, median incomes are falling. Overall, labor income is estimated to have fallen by as much as 10% in the Asia–Pacific region in the first three quarters of 2020, equivalent to a 3% loss in gross domestic product.”

ILO Assistant Director General and Regional Director for Asia and the Pacific Chihoko Asada Miyakawa said in a statement that the region continued to struggle in terms of addressing the immediate needs of workers.

“COVID-19 has inflicted a hammer-blow on the region’s labor markets, one that few governments in the region stood ready to handle. Low levels of social security coverage and limited institutional capacity in many countries have made it difficult to help enterprises and workers back on their feet, a situation compounded when large numbers remain in the informal economy,” she said.

In a phone interview with BusinessWorld on Wednesday, Employers Confederation of the Philippines President Sergio R. Ortiz-Luis, Jr. said the ILO’s findings also reflected Philippine conditions. However, he added that things are “looking up” now that the economy is gradually reopening.

BusinessWorld asked labor unions for comment but they had yet to reply at deadline time. — Gillian M. Cortez

P1B added to LANDBANK farmer lending program

THE Department of Agriculture (DA) has given P1 billion to the Land Bank of the Philippines (LANDBANK) to serve as additional funding for an emergency loan programs targeted at small farmers and fisherfolk.

At a virtual ceremony on Dec. 15, Agriculture Secretary William D. Dar and LANDBANK President Cecilia C. Borromeo signed the fund transfer agreement, which also outlines the implementing rules for the DA’s loan program.

The funds were allocated under Republic Act No. 11494 or the Bayanihan to Recover as One Act. The program is expected to benefit around 40,000 eligible borrowers.

“This is our way of helping agri-fishery micro, small and medium enterprises (MSMEs), and small farmers and fishers recover from their losses, as they play a crucial role in ensuring the availability of food in Metro Manila and other urban centers,” Mr. Dar said.

Under the loan program, small farmers and fisherfolk may borrow up to P25,000 with no collateral and zero interest, payable in 10 years.

The funds can be used for production, post-harvest, processing, marketing, and other activities in the food supply chain.

Meanwhile, Ms. Borromeo said by the end of November, LANDBANK had lent P7.76 billion to the agriculture sector, benefiting 228,000 farmers.

“We welcome this opportunity to distribute timely, responsive, and non-interest bearing financing for small farmers and fishers, whose sources of livelihood and income are adversely affected by the ongoing pandemic,” Ms. Borromeo said.

The DA said an initial P2.5 billion was allotted for the loan program, which has been fully released to more than 535,000 farmers during the early stages of the pandemic.

“We will continue what we have started because it is our moral obligation to provide food for all Filipinos, and we start by helping our frontliners in the countryside,” Mr. Dar said. — Revin Mikhael D. Ochave

Agri dep’t lifts suspension on poultry imports from Brazil

THE Department of Agriculture (DA) said it lifted the suspension on poultry imports from Brazil, after Brazilian veterinary authorities submitted certifications requested by the Philippines.

In a memorandum order signed on Dec. 14, Agriculture Secretary William D. Dar said the DA was assured of the precautions taken at Brazilian processing plants against contamination with coronavirus disease 2019 (COVID-19).

In August, the DA barred the entry of poultry from Brazil after China found traces of SARS-CoV-2, the virus that causes COVID-19, in chicken meat.

Mr. Dar said Brazil has given “satisfactory” evidence of safe handling at the processing plants.

“Brazil has provided evidence that the safety protocols enforced in different accredited meat establishments are equivalent to the guidelines established by the Philippines relative to the mitigating measures against COVID-19 in meat establishments,” Mr. Dar said.

Jesus C. Cham, president of the Meat Importers and Traders Association (MITA), said the ban’s lifting is a welcome development for the meat industry.

Mr. Cham expects the poultry supply from Brazil to normalize by the end of the first quarter of 2021.

“Both countries should now put this incident behind them and move forward,” Mr. Cham said in a mobile phone message.

In October, Brazil wrote to the Department of Foreign Affairs, calling the ban “unjustified” in the wake of the adoption of safety procedures.

The DA partially lifted the suspension on Brazilian poultry in September for mechanically deboned meat.

According to data from the Bureau of Animal Industry, Brazilian meat imports account for 16.1% or 121,952 metric tons of total meat imports.

Separately, the DA ordered the suspension of poultry imports from parts of Poland, Belgium, South Korea, the UK, and Japan due to reported outbreaks of two strains of Highly Pathogenic Avian Influenza (HPAI), or bird flu.

In five separate memorandum orders, Mr. Dar prohibited imports of domestic and wild birds and their products including meat, day-old chicks, eggs, and semen from Wielkopolskie, Poland, West-Vlaanderen, Belgium, Jeollabuk-Do, South Korea, England, and multiple locations in Japan.

The ban also includes the suspension on the processing, evaluation, and issuance of sanitary and phytosanitary import clearances for all such products.

“There is a need to prevent the entry of HPAI virus to protect the health of the local poultry population,” Mr. Dar said.

MITA’s Mr. Cham said the regional bans may prolong the tight supply conditions here, but will not have much of an effect on the sector. — Revin Mikhael D. Ochave

PHL wheat import outlook cut on weak animal feed demand

PHILIPPINE wheat imports are expected to total 6.8 million metric tons (MT) in the 2020-2021 marketing year (MY), downgrading its previous estimate of 7 million MT due to weaker demand for animal feed, the US Department of Agriculture (USDA) said.

In a report, the USDA’s Foreign Agricultural Service said the Philippine trade in wheat rose 9% year on year to 2.3 million MT in the three months to September, which is also the first quarter of MY 2020-2021.

“Milling wheat from the US drove this growth, as contacts report the bakery and noodle sectors doing well during the pandemic,” the USDA said.

“With 1 million MT shipped from July to September, the Philippines is currently the largest destination for US wheat,” it added.

The USDA added that a decline in feed wheat consumption due to African Swine Fever (ASF) is expected to offset higher milling wheat demand.

It said Philipine hog producers have downsized due to ASF, with more than 400,000 animals culled as a result of the virus.

The USDA said the animal feed segment will also be hampered by restrictions on the issuance of Sanitary and Phytosanitary Import Clearances (SPSICs), and additional requirements for obtaining the document.

“Importers have reported unpredictability in the issuance of import clearances during the last three months,” the USDA said.

Meanwhile, the USDA projected Philippine corn production for MY 2020-2021 at 8.2 million MT, across a harvestable area of 2.6 million hectares.

It added that corn imports during the period at 600,000 MT.

Under the new guidelines set by the Department of Agriculture, new requirements are now needed for corn and wheat import clearances, including a description of the commodities, an affidavit declaring the shipment’s purpose, and a separate SPSIC for every shipment with a different declared purpose, among others.

“Industry contacts have noted that new requirements in the recently issued Memorandum Circular No. 39 could disrupt corn exports and limit feed availability and affordability in 2021,” the USDA said.

The USDA estimated Philippine rice output at 12 million MT during MY 2020-2021, harvested over 4.65 million hectares.

Its rice import estimate was cut to 2.3 million MT for the year from the previous estimate of 2.6 million MT, as a result of the SPSIC bottleneck.

“The Bureau of Plant Industry (BPI) issued 678 SPSICs from July to October in 2020 for 490,441 MT, down 53% from the 1.19 million MT representing 1,462 SPSICs issued during the same period in 2019,” the USDA said. — Revin Mikhael D. Ochave

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