Japan to cut wheat imports due to higher prices in 2018/19: USDA

Japan is to limit the amount of wheat it imports in the coming year as higher prices push buyers to look for alternatives, the USDA’s local office in Tokyo said in a report issued Thursday.

The government, which is responsible for wheat imports in Japan, has increased sale prices three times since October 2016 due to higher freight costs, a weaker yen, question marks over the quality of the US HRW crop, and higher Australian noodle wheat prices, the USDA said.

As a result, it cut 100,000 mt from its current marketing year forecast to take total imports to 5.8 million mt as higher domestic production and flattening feed wheat demand also cut into Japan’s requirements.

Wheat imports for the 2018/19 marketing year are expected to remain flat at 5.8 million mt, while other grains are expected to see stronger demand in the coming marketing year.

Japan, the world’s biggest corn buyer, is expected to see imports remain high on the back of ample global supply and strong domestic feed demand.

The Tokyo office revised its 2017/18 import figure 2% higher from its previous estimate to 15.3 million mt, with 2018/19 imports expected to reach a similar level.

Having revised its forecast for 2017/18 barley imports to 1.25 million mt from 1.1 million mt, the USDA office is now forecasting 2018/19 imports to total 1.28 million mt as demand increases on the back of higher human consumption.