Is Japan an unattainable goal for the Black Sea region?

07.03.2017

Information has surfaced this week that Japan had unsealed its strategic corn reserves.

Back in mid-February Japanese compound feed producers reported a decrease in corn inventories to a critically low level. And last week Japan’s Ag Ministry permitted millers to use emergency corn reserves because operational stocks appeared at a critical level due to delayed supplies from the U.S. – the top supplier of this cereal crop to the Japanese market. The U.S. Pacific ports stopped shipping export grain cargoes in the middle of February due to sharp weather deterioration.

Overall, the problem is considered as solved: the reserves are unsealed and deliveries from the U.S. are to resume. But yet, why Japanese traders had to resort to using the nation’s strategic reserves? Until recently they sought alternative markets to buy corn. In particular, the Australian, Chinese, Black Sea ones were eyed by Japanese importers.

According to UkrAgroConsult’s analysts, Ukraine did resume deliveries of its corn to Japan this season. Last time Ukrainian corn exports went to Japan in the 2014/15 season (427 KMT).

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

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