Japan to slash domestic wheat price by 1.8% from October

Japan will slash the price at which it sells imported wheat to domestic flour mills from October by an average 1.8% to reflect a softer international wheat market, the country’s farm ministry said on Wednesday. This marks the government’s third consecutive drop in prices. Japan buys five types of milling wheat from the United States, Canada and Australia through import tenders and sells to domestic millers at prices set twice a year. The reduction in domestic wheat price reflects a good harvest in major U.S. wheat-growing regions, which has offset the yen’s depreciation against the U.S. dollar and higher ocean freight rates, an official at the farm ministry said. For the six months starting Oct. 1, the ministry’s wheat-selling price to local millers will average 66,610 yen ($469) per metric ton, down from 67,810 yen the previous six months. Imports account for more than 80% of Japan’s total wheat demand. The farm ministry expects that the lower price will have a limited impact on ...