In September 2011, the Japanese Ministry of Agriculture, Forestry and Fisheries increased its quota for feed wheat in fiscal year 2012, from 446,000 metric tons (17.5 million bushels) to 1.21 million tons (47.2 million bushels). This week's U.S. Grains Council Chart of the Week shows Japan's feed wheat imports from October 2010 to August 2012. It demonstrates that imports have grown since late 2011.
High global corn prices will cause reaction in the industry with people trying to mitigate high feed costs. This substitution is a great example of increasingly competitive situation facing U.S. corn. Once end-users and feed mixers become accustomed to a new ration, it can become a challenge to win back the market.