U.S. wheat is facing “imminent collapse” in the Japanese market, and Canada and Australia will be the beneficiaries of its demise, reports The Western Producer.
Japan has been the largest and most valuable U.S. wheat customer over the past five years, but that is about to change, according to U.S. Wheat Associates.
Through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the mark-up on Canadian and Australian wheat will be capped at $148 per tonne as of Dec. 30, 2018, and fall to $140 per tonne as of April 1, 2019.
USW president Vince Peterson said that will put U.S. wheat at a $14 per tonne price disadvantage as of April 1.
Read the full report here.
