Japan to Lower Imported Wheat Prices by 11 Pct

The Japanese agriculture ministry said Tuesday that it will lower domestic sale prices of imported wheat by 11.1 pct on Oct. 1 from the level for April-September.

The weighted average price for five imported wheat products for sale to domestic milling companies will drop to 68,240 yen per ton, on the back of plentiful harvests in major production areas in the United States and falls in ocean freight fees. This will be the first drop in three years.

But impacts on retail prices of food products using flour will likely be limited. According to the ministry, the wheat price cut is seen leading to retail prices of bread falling by 2.0 yen, or 0.9 pct, per loaf and those of family-use flour by 13.0 yen, or 3.9 pct, per kilogram.

The markdown is expected to push down the country’s consumer price index by 0.012 pct.

All of the foreign wheat used in Japan is imported by the government and then sold to private milling companies.

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