Japan will slash its stockpiles of corn and sorghum by 33 percent next fiscal year, cutting imports as the largest buyer of U.S. grain aims to boost feed rice output to reduce its reliance on overseas supplies.
“Japan is enhancing the role of its rice as an alternative to U.S. corn,” said Nobuyuki Chino, president of Unipac Grain Ltd. in Tokyo. “Competition between Japan and other corn buyers intensified” as China became a net importer this year and Russia’s ban on grain exports following its worst drought in 50 years prompted countries such as South Korea and Egypt to seek alternative supplies from the U.S., the largest exporter of corn and wheat, he said.
Japan imported 11 million tons of feed corn last year, 96 percent of it from the U.S. The cost of importing U.S. corn into Japan has increased to about 25,000 yen ($298) per ton, including freight, Chino said.