The Department of Agriculture (DA) on Wednesday dismissed allegations of corn hoarding in Cagayan Valley, saying that market forces, and not export speculation, dictate the price of commodity.

In a report, Lucrecio Alviar Jr., DA Region 2 regional executive director, said that corn traders refused to sell their grain stocks because of higher farm gate prices they pay to farmers.

“Their price offer is lower than their buying price. Meantime, the traders are ‘holding’ their corn grain waiting for a higher price,” Alviar said.

The regional director explained that during the last week of September to the first week of October 2012, traders bought corn grains at P15 to P15.20 per kilogram at 14 to 15 percent moisture content.

However, on the third week of October, feed millers and hog raisers from Bulacan province came to buy offering a price of P13.60 per kilo, Alviar said.

The alleged hoarding of the grains came at a time when the Philippines is discussing possible export of corn amid high grain prices in the world market and projected surplus by next year.

The DA-National Corn Program expects to corn production to reach a record-high of 7.819 million MT in 2012, and about 8.450 million MT by 2013.

Edilberto de Luna, DA assistant secretary and NCP director, said that there is a possibility that local corn growers will be allowed to commercially export yellow corn starting in the fourth quarter of 2012.

De Luna also said that the Philippines may export some 200,000 to 400,000 metric tons of corn amid high grain prices in the world market and projected surplus by next year.

Roderice Bioco, chief operating officer of the Mindanao Grain Processing Co. Inc., earlier debunked corn hoarding allegations brought about by the rising grains prices in the world market.

Bioco said that the perception of higher import cost of corn is more compelling to raise prices despite the expected bumper crop in Cagayan Valley.

The executive also stressed that it is not feasible for traders to export their corn stocks at the rate they are buying the commodity, while world market prices remained too low.

He said that corn prices are still too high at P15 to P17 per kilo, noting that average prices of imported tariff-free corn are just around P18 per kilo level.

The official said that the world market prices of around P20 per kilo would be the ideal range for them to start exporting the grains.

“Traders are taking all the risk now, because of higher prices they pay. Nobody wants to lose money, so at the prices they are paying now, they’ll be losing money if they sell their stocks,” he added.