Japan Marks Up Wheat To $18.72/Bushel – for Sep. 9, 2010

Japan will raise the price at which it sells imported wheat to domestic flour millers by an average one per cent to 47,860 yen (C$602) per tonne from Oct. 1, the Farm Ministry said in a statement Aug. 24.

The price for Canadian Western Red Spring, the highest- value wheat imported by Japan, will rise to 54,640 yen (C$688/tonne, $18.72/bu.).

It was the first increase in two years, when the ministry raised its selling price of imported wheat for the six months from October 2008 by 10 per cent to an average 76,030 yen to reflect rising global wheat prices.

Japan, the world’s fourth-biggest wheat importer, buys five types of milling wheat from the United States, Canada and Australia through import tenders and sells to millers at prices fixed twice a year. It imports 90 per cent of its wheat needs.

For the current fiscal year to March 31, 2011, Japan plans to buy 4.96 million tonnes of foreign milling wheat to supplement locally grown grain.

The October-March price of each wheat type will be based on a weighted average of the ministry’s purchase prices in the six months to August 2010.

The ministry said from October, it will stop disclosing the breakdown of prices for each type of imported wheat due to changes in the way it sells to domestic millers.

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