Philippines Seeks Wheat Supplies After China Rebuff

[Joanne98]

Source: Bloomberg

April 11 (Bloomberg) -- The Philippines said China turned down a request to supply wheat, adding to concern that the world faces a worsening shortage of staple foods that has already driven grain prices to records.

``China politely turned us down, saying they also need to stock up,'' Trade Secretary Peter Favila said in a telephone interview today. ``We've alerted all our trade attaches to find out where we can source wheat, so as not to cause shortages.''

The rebuff follows a struggle this year by the Philippines to secure supplies of rice, of which it is the largest importer. Wheat has more than doubled in the last year to a record and rice is up 94 percent, triggering riots from Egypt to the Ivory Coast.

China ``is tightly controlling exports'' through permits and taxes to secure grain supplies, Xu Fan, an analyst at China International Futures Co., said by phone from Shenzhen.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aqqEox9hPk8Y&refer=home

[bemildred]

1. This is not going to be pretty. nt

[Lasher]

2. Yet we are paying $8 billion a year in farm subsidies.

Mostly to agribusiness in red states.