Remember that report I gave you yesterday about GMO wheat appearing on an Oregon farm? Fall out from that report was quick. Japan is suspending certain wheat purchases until we sort this mess out.
Japanese authorities have already opted to cancel part of a tender offer to buy US western white wheat and have suspended imports of both that variety and feed wheat, Reuters reported on Thursday.”We will refrain from buying western white and feed wheat effective today,” Toru Hisadome, a Japanese farm ministry official in charge of wheat trading, told the agency.
This is not good news for the American wheat farmer. Japan is the largest exporter of our wheat behind Mexico so that’s a big sector of our market just disappearing. Other Asian buyers of our wheat are considering the same course of action.