June 9, 2009

Taiwan's imports of wheat and corn are seen to decrease by 14 percent and 3 percent respectively, reports the US Department of Agriculture.

A significant decrease in wheat consumption has been observed driven by high world wheat prices and the abundance of domestic rice as substitute for imported wheat. Taiwan's wheat import forecasts for marketing year (MY) 2008-09 and 2009-10 are projected at one million tonnes, representing a 180,000-tonne or 14 percent decrease from last year. The US wheat import share is anticipated at 85 percent.

Corn import forecasts for MY 2008-09  and 2009-10 are both 4.32 million tonnes--an 11,000-tonne or 3 percent decrease in line with around 2 percent in local livestock production target from the previous year. However, US import share is forecast at 80 percent, a record low, compared with historic-near monopoly position. Taiwan corn imports have been hesitating to purchase US corn during volatile world corn market situation and instead have imported small shipments from Asian countries including China. Although the official ban on many agricultural imports from China is still standing, Taiwan temporarily lifted the ban on corn from China in response to local industries' petition for alternative import sources to cope with volatile corn market conditions.

For more of the USDA report, please click here.