Japan ramps up US, June Canada wheat buys to offset delays

Thu, 06 Feb - 7:38pm
    TOKYO, Feb 6 (Reuters) - Japan ramped up its purchases of 
U.S. grains and June-arrival Canadian wheat used for making 
bread and noodles, in a tender awarded on Thursday, in a move to 
offset the possibility of extended shipping delays from Canada. 
    Canada's record canola and wheat harvests have clogged its 
rail arteries and overwhelmed its ports, delaying shipments and 
creating logistical bottlenecks threatening to last at least 
into spring.    
    Japan's Ministry of Agriculture bought 50,310 tonnes of Hard 
Red Winter and 82,454 tonnes of Dark Northern Spring grades from 
the United States, as well as 99,522 tonnes of late June-arrival 
Canadian Western Red Spring wheat. 
    Japan typically buys about 20,000-30,000 tonnes each of the 
five grades of food quality wheat from the U.S., Canada and 
Australia in tenders typically issued three times a month. 
    "There were worries if shipments from Canada will be able to 
arrive or not, so we were asked (by millers) to take additional 
supply from the U.S.," a farm ministry official said. 
    Tokyo-based grain industry sources said wheat shipments to 
Japan from Canada are currently delayed by about a month. 
    "The problem is (Canada) has too much crop and no outlets, 
so shipments have been slow," one of the sources said. 
    The bumper crop has overwhelmed Canadian National Railway 
   and Canadian Pacific Railway   , resulting in a 
combined backlog of some 40,000 grain hopper cars. 
   
    Japan bought a total of 284,161 tonnes of food quality wheat 
in the regular tender or nearly all of the 312,816 tonnes it 
tendered for on Tuesday.    
    The official said the ministry's 28,655 tonnes of Western 
Red Spring it failed to buy would likely be rolled into a future 
tender, but was unsure when that would be since next Tuesday, 
when the tender is normally issued, is a national holiday in 
Japan. 
    Mostly likely it would be in a day-delayed tender next 
Wednesday, he said, adding nothing had been formally decided.  
    Japan keeps a tight grip on imports of the country's second 
most important staple after rice and buys the majority of the 
grain for milling via the tenders. 
    COUNTRY           TYPE                         QUANTITY 
    U.S.              Western White                 20,925* 
                      Hard Red Winter               18,360** 
                      (Semi-hard) 
                      Hard Red Winter               31,950* 
                      (Semi-hard)     
                      Dark Northern Spring          28,489** 
                      (Protein minimum 14.0 pct) 
                      Dark Northern Spring          24,030* 
                      (Protein minimum 14.0 pct) 
                      Dark Northern Spring          29,935*** 
                      (Protein minimum 14.0 pct)     
    Canada            Western Red Spring            23,400**** 
                      (protein minimum 12.5 pct)     
                      Western Red Spring            27,760**** 
                      (protein minimum 12.5 pct)     
                      Western Red Spring            23,942**** 
                      (protein minimum 12.5 pct)     
                      Western Red Spring            24,420**** 
                      (protein minimum 12.5 pct)     
    Australia         Standard White                30,950***** 
                      (West Australia)                
    Shipments: *Loading between March 21 and April 20; **Loading 
between Feb. 21 and March 20; ***Loading between April 21 and 
May 20; ****Arrival by June 30; *****Loading between April 1-30 
 
 (Reporting by James Topham; Editing by Sunil Nair) 
 ((james.topham@thomsonreuters.com)(+813 6441 1858)(Reuters 
Messaging: james.topham.thomsonreuters.com@reuters.net)) 
 
Keywords: JAPAN WHEAT/TENDER  
     
URN: 
urn:newsml:reuters.com:20140206:nL3N0LB2JC:3
Topics: 
JP RRL GRA FOTB SHP CMPNY INDS RORA CA RRLF REP FOBE WHT RTRS TRAN NCYC FOOD1 US FOD AU AGRI COM ASIA LEN NEWS1 SHIP AMERS

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