Japan Buys 193,417 Tons Wheat, Sets Next Tender Dec. 9

Japan bought 193,417 metric tons of milling wheat from the U.S. and Canada in a tender today, adding to its biggest purchase in two years last week as the government accelerates grain buying on tightening supply and rising prices.

The government will hold its second tender this week to import 51,210 tons of Canadian wheat for bread-making on Dec. 9, according to Ryou Okajima at the grain-trade division of the Ministry of Agriculture, Forestry and Fisheries. Normally the ministry held tenders once a week.

Japan, Asia’s second-largest importer, bought 209,297 tons of milling wheat from the U.S. on Dec. 2, the largest purchase since June 19, 2008. Wheat regions in Australia, the fourth- largest exporter, will get more heavy rainfall this week, according to the Bureau of Meteorology, as crop-quality concerns widen in later-harvesting areas.

Some crops had been cut to feed grade in South Australia, the second-largest producing state this season, because of rain, with harvest in the early stages, Peter White, president of the South Australian Farmers Federation, said by phone. Harvest begins in the northern state of Queensland, where the crop is 60 percent gathered, and progresses south.

Wheat advanced to a four-month high on concerns that wet weather will delay the harvest and reduce supplies of milling quality grain. Australia had its wettest September-to-November spring on record.

Details of today’s tender are listed below:

=============================================================
Wheat Exporter      Grade                         Metric Tons
=============================================================
U.S.                Hard Red Winter                51,923
                    Dark Northern Spring           88,961
Canada              Western Red Spring             52,533
=============================================================

To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.