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USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed


01 August 2013

USDA GAIN: Japan Grain and Feed Update - July 2013USDA GAIN: Japan Grain and Feed Update - July 2013

Overall feed production in Japan continues to be stable. While corn utilization in feed has shrunk further this marketing year due to high prices, use of sorghum and wheat has advanced. As U.S. corn prices remain at a high level, Brazil has displaced the United States as the leading supplier of feed corn to Japan.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

Post:

Tokyo

Overall Market Situation

Up-to-date feed production statistics and a detailed breakdown of feed ingredient utilization ratios follow. During Japan’s fiscal year (JFY) 2012 the corn utilization ratio continued on a gradually declining trend to 42.3 percent. Use of sorghum and wheat has increased instead.

Japan has a feed stabilization program, whereby the combination of a subsidy by the Ministry of Agriculture, Forestry and Fisheries (MAFF) and an industry fund helps absorb sudden surges in the compound feed price. It is activated when the import costs of ingredients in a particular quarter exceed the average import costs of ingredients in the previous one year. As the graph below shows, during the most recent quarter (April-June 2013), compound feed prices increased by 3,200 yen per metric ton, from 63,250 to 66,450 yen. This increase was almost entirely absorbed by the subsidy.

Corn Update

The following tables show monthly imports of corn during the current marketing year. Brazil has displaced the United States as the leading supplier of feed corn to Japan, supplying over 56.2 percent of all the feed corn Japan has imported since October last year. Despite higher prices, however, the United States continues to supply over 75 percent of food corn to Japan. As Chart 2 below shows, U.S. share of corn imports in total (feed corn and food corn combined) dropped to 37.6 percent in February 2013. It has since picked up, as the import price started declining (Chart 3). Overall, the United States and Brazil are neck and neck, sharing about 45 percent each of the total corn Japan has imported so far this marketing year.

Revised PS&D

Based on the above import statistics, Post’s estimate for MY2012/13 overall imports, as well as imports from the United States, has been revised downward to 14.8 MMT and 7 MMT, respectively. Since overall corn imports have started to show signs of recovery in recent months, Post’s estimate is slightly higher than the USDA Official.

August 2013

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