Japan, the largest corn buyer, will probably boost U.S. imports after cutting its reliance on American grain to the lowest-ever level, as Chicago futures entered a bear market, industry officials said.
The worst U.S. drought in more than half a century will spur Japan, the world’s biggest corn importer, to buy a record amount from Brazil after record prices increased costs for feed makers and meat producers.
Canada couldn’t offer wheat to Japan at today’s tender because it is seeking to resolve “some logistical issues” with the buyer, said Derek Sliworsky , general manager at the Canadian Wheat Board in Tokyo.
Japan, the world’s largest corn importer, doubled grain purchases from Europe in the past two months, heading for a record volume from the region this year, as local feed mills seek cheaper alternatives to U.S. supply.
Canada, the third-largest supplier of wheat to Japan, ruled out supplying the grain to the Asian nation because of quality and shipment problems, highlighting the tightness in supplies of high-protein wheat.
Japan, the world’s largest corn importer, is set to spend $20 million to help feed mills boost stockpiles and safeguard food security as the nation shifts purchases from the U.S. to Ukraine and Brazil.