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One of the reasons for this increase is the reduction in the production of major wheat production areas such as Russia and Europe. At the SAMe time, due to the drought in the United States, the prices of corn and soybeans soared, and the demand for wheat as a feed substitute increased significantly, which in turn led to an increase in international wheat prices.
Of the wheat sold in Japan, 90% are imported wheat. In order to ensure a balance between supply and demand, the government will import the goods first and then sell them to the milling companies. The prices will be adjusted in April and October each year.
According to the Japan Broadcasting Association (NHK) and Japan’s “Sankei Shimbun†on August 22, the Japanese Ministry of Agriculture, Forestry, and Fisheries said on the 22nd that the price of imported wheat will be raised in October this year. The prices of five brands produced by the United States, Australia, and other countries are average. It rose 3% to reach 50,000 yen per tonne (approximately RMB 4014).