1/20/09 Japanese exploring U.S. soft red winter wheat

Farm and Ranch January 20, 2009 Japan is the major customer for western white wheat, that blend of common soft white and club wheat. This latest cycle of significant price premiums for club wheat over soft white, because of tight supply, apparently has the Japanese checking into alternatives. Tom Mick, CEO of the Washington Wheat Commission says that is worrisome. Mick: "The reason we are concerned is soft red winter wheat right now is trading much cheaper than soft white and soft red winter land Japan is cheaper than western white land Japan and soft red is originated in the Gulf. This gives us some concern that they may look for a different source of supply for their white wheat needs." And the Japanese have been doing some checking into soft red, which is produced in the Midwestern U.S. Mick: "They looked at it. They tested it this last year. It did not meet their quality requirements as western white does. That is in our favor. However, we have been advised that the Japanese would like to take a trade team to the soft red winter wheat area to take a look at the varieties being produced there and may do some testing." Mick described this as a very sensitive issue and is a top priority for the Washington Wheat Commission. He says the Commission believes there is enough club wheat to meet demand until the next crop is harvested. There is anecdotal evidence farmers planted slightly more club for harvest this coming summer. But there also concerns about how the crop has fared this winter. As for soft red winter wheat, it is estimated farmers planted 26 percent fewer acres this year. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.