Japan will raise prices of imported wheat for sales to domestic flour millers by 1 percent on average in October, the first increase in two years, after Chicago futures surged on Russia’s export ban.
Prices of foreign milling wheat will increase to 47,860 yen per metric ton on average starting Oct. 1, depending on the brand of the grain, the Ministry of Agriculture, Forestry and Fisheries said. This is the first increase since October 2008, adding to costs for Nisshin Seifun Group Inc., Japan’s biggest flour miller, as well as rivals including Nippon Flour Mills Co.
Japan, which depends on imports for almost 90 percent of its wheat, buys the grain exclusively from the U.S., Canada and Australia through state tenders. The ministry, which controls overseas purchases and domestic sales to stabilize supply, is Asia’s largest wheat buyer as a single entity.