Out of the total supply of 122,270 tons of domestically-grown wheat to be cultivated in the 2014 harvest year, only 74,370 tons were purchased in the first bidding, National Rice Wheat and Barley Improvement Association announced Wednesday, October 16.
The ratio of purchase orders to the amount of supply was as low as 0.8, and the ratio of successful bids was 60.8 percent, lower than the previous year, as many buyers, such as flour milling firms, have excessive inventories and were cautious in placing bids. The next bidding will be held on Tuesday, October 29.
A total of 28 varieties, one brand less than the previous year, were offered by producers such as the National Federation of Agricultural Co-operative Associations (JA Zen-noh). Yukichikara from Yamagata Prefecture and Kinuakari from Aichi Prefecture were offered for the first time. The average price was ￥48,263 per ton, 4.1 percent lower than the standard price – the price of previous year adjusted by the fluctuation rate of the government’s sales price of imported wheat.
According to varieties, Harukirari of Hokkaido and Yukichikara did not receive purchase orders. Prices rose for Tsurupikari from Gunma Prefecture, Shiroganekomugi from Hyogo Prefecture, Iwainodaichi from Gifu Prefecture, Norin No.61 from Aichi and Shiroganekomugi from Fukuoka Prefecture, while prices for the rest of the varieties dropped.
An official of a flour milling company who participated in the bidding said there is a supply-demand mismatch, as there are less buyers compared with the amount available for sale.
As for Kitahonami from Hokkaido, a variety which is fit for producing noodles and which occupies some 60 percent of total supply in the market, only 47,270 tons were purchased out of total supply of 75,290 tons. The sales price was ￥46,516 per ton.
The association and tender participants have agreed on a rule that producers must put out to tender barley whose amount of sales of each seller exceeds 3,000 tons, and six-rowed barley, two-rowed barley and rye with expected sales of each seller exceeding 1,000 tons. Producers with smaller amount of expected sales can participate if they wish to do so. Each seller should put out to tender 30 percent of the amount they expect to sell, and the rest is traded one-on-one, based on the tender price.
(Oct. 18, 2013)