July 3, 2013

South Korea may resume import of US wheat

Following the latest tests by authorities which found no evidence of genetically engineered wheat in cargoes from the US, South Korean millers will decide this week whether to lift a ban on US white wheat imports.

South Korea and Japan, Asia's leading wheat importer, imposed a ban on US white wheat imports in May after an unapproved genetically modified strain was found in an Oregon field.

Chicago wheat prices have taken a hit as Asian importers remain reluctant to buy US white wheat even as the US government has said the discovery of the rogue strand appeared to be an isolated incident.

South Korea tested 160 cases of wheat and flour covering all US shipments and did not find any genetically modified wheat, the food ministry said in a statement on Tuesday (Jun 25). Initial tests had examined wheat from the state of Oregon.

"We will discuss this week if we should lift the ban on US white wheat imports," said a spokesman of the South Korea Flour Dealers Association.

The ministry said it will continue testing US wheat shipments for strains of gene-altered grains.

Chicago Board of Trade wheat futures slid to a one-year low on July 1, pressured by the rapidly advancing US winter crop harvest and weak demand.

Japan is offering to buy wheat that is not the US western white variety, for the first time in at least 53 years.