Production:

Remains unchanged from the previous report.

Consumption:

The MY 2014/15 wheat consumption forecast remains unchanged at 3.7 million tons from the previous estimate in view of a slow trend in feed grade wheat consumption for the first five months, while milling wheat consumption maintains a similar pattern to that of the previous year during the same period.

Korea: Post Estimates of Domestic Wheat Use

(1,000 MT, July/June)

Year

2011/12

2012/13

2013/14

2014/15 c/

Imported Milling Wheat 1/

2,153

2,193

2,132

2,130

Imported Milling Wheat 2/

130

167

180

180

Flour Imports a/

42

39

33

35

Flour Exports a/

60

62

63

65

Pasta Imports a/

122

135

150

155

Pasta Exports a/

120

130

140

145

Local Wheat

44

37

27

27

FSI Consumptionb/

2,311

2,379

2,319

2,317

Feed Wheat

2,870

2,818

1,936

1,400

Total Consumptionb/

5,181

5,197

4,255

3,717

Source: Korea Feed Association (KFA), Korea Flour Millers Industry Association (KOFMIA) and Korea Customs Service (KCS)

a/ Wheat basis

b/ include local wheat, flour imports and pasta imports but exclude flour exports and pasta exports

c/ FAS/Seoul forecast

1/ KOFMIA members

2/ non- KOFMIA member

Korea: Monthly Wheat Use

(1,000 MT)

Month

Feed Wheat

Milling Wheat a/

MY 2013/14

MY 2014/15

MY 2013/14

MY 2014/15

July

235

129

176

183

August

219

121

173

174

September

226

126

156

166

October

245

134

185

179

November

205

130

180

172

Sub Total

1,130

640

870

874

December

159

na

180

na

January

125

na

184

na

February

100

na

161

na

March

101

na

176

na

April

100

na

180

na

May

108

na

177

na

June

114

na

175

na

Total

1,936

na

2,102

na

Source: KFA and KOFMIA

a/ includes wheat flour exports, but excludes the portion used in soy-sauce production

Wheat Trade:

MY 2014/15 wheat imports remain unchanged at 3.9 million tons from the previous forecast. According to trade and sales contract data of optional origin, around 0.9 million tons were contracted with delivery for the first ten months of MY2014/15. Feed millers expect to contract further amounts of feed wheat under the current price structure for feed corn and wheat for the remainder of the marketing year. Latest contracts showed that feed wheat price was about USD 40 per ton higher on arrival than feed corn price.

Korea: Wheat Imports

(1,000 MT, Customs Cleared Basis)

Marketing Year

(July/June)

Feed Wheat

Milling Wheat

Flour Imports

1/

Pasta Import

1/

Total

05/06

1,536

2,220

41

101

3,898

06/07

976

2,298

69

108

3,451

07/08

565

2,317

105

117

3,104

08/09

1,151

2,058

69

105

3,383

09/10

2,164

2,071

127

119

4,481

10/11

2,075

2,520

63

123

4,781

11/12

2,868

2,169

42

122

5,201

12/13

2,820

2,461

39

135

5,455

13/14

1,948

2,181

33

150

4,312

14/152/

1,400

2,310

35

155

3,900

Source: Korea Customs Service

1/ Wheat basis

2/ FAS/Seoul forecast

Korea: MY 20014/15 Monthly Wheat Imports by Origin

(1,000 MT, based on Customs Clearance)

Country

U. S.

Australia

Canada

India

Other

Total

Milling Wheat

2014 July

140

15

23

0

0

178

August

90

93

6

0

0

189

September

72

77

33

0

0

182

October

107

119

11

0

0

237

November

56

99

23

0

1

179

December

99

104

2

0

1

205

Total(Jul-Dec) 2014

564

507

98

0

2

1,170

Total(Jul-Dec) 2013

552

425

79

0

0

1,057

Feed Wheat

2014 July

47

0

30

5

5

87

August

0

0

30

5

0

35

September

0

0

39

0

110a/

149

October

0

0

0

0

230b/

230

November

0

0

3

0

114c/

117

December

0

0

0

0

97d/

97

Total(Jul-Dec) 2014

47

0

102

10

556

715

Total(Jul-Dec) 2013

0

0

56

196

954

1,207

Total Wheat

2014 July

187

15

52

5

5

266

August

90

93

36

5

0

224

September

72

77

71

0

110

331

October

107

119

11

0

230

467

November

56

99

26

0

115

296

December

99

104

2

0

97

303

Total(Jul-Dec) 2014

611

507

198

10

557

1,887

Total(Jul-Dec) 2013

552

425

135

196

954

2,264

Source: Korea Customs Service

a/ Romania (40,675 MT); Bulgaria (69,449 MT)

b/ Ukraine (161,836); Bulgaria (46,854); Romania (21,827)

c/ Ukraine (113,736);

d/ Ukraine (96,142); Romania (1,094)

Korea: MY 2014/15 Feed Wheat Contracts by

Estimated Time of Arrival (ETA)

(Unit: 1,000 MT, as of early January 2015)

ETA

Quantity

Price (USD/MT)1/

Jul. 2014

65

290

Aug.

130

289

Sep.

106

287

Oct.

194

268

Dec.

84

244

Jan. 2015

118

241

Feb.

112

249

Mar.

55

250

Apr.

55

254

Total

919

Source: Local Grain Traders

1/ CNF on Weighted Average

Production, Supply and Demand Data Statistics:

Wheat PS&D

Wheat

2012/2013

2013/2014

2014/2015

Market Begin Year

Jul 2012

Jul 2013

Jul 2014

Korea, South

USDA Official

New post

USDA Official

New post

USDA Official

New post

Area Harvested

9

9

7

7

7

7

Beginning Stocks

1,393

1,393

1,528

1,496

1,480

1,377

Production

37

37

27

27

27

27

MY Imports

5,439

5,455

4,288

4,312

3,800

3,900

TY Imports

5,439

5,455

4,288

4,312

3,800

3,900

TY Imp. from U.S.

1,312

1,407

1,403

1,220

0

1,300

Total Supply

6,869

6,885

5,843

5,835

5,307

5,304

MY Exports

144

192

144

203

150

210

TY Exports

144

192

144

203

150

210

Feed and Residual

2,818

2,818

1,900

1,936

1,400

1,400

FSI Consumption

2,379

2,379

2,319

2,319

2,320

2,320

Total Consumption

5,197

5,197

4,219

4,255

3,720

3,720

Ending Stocks

1,528

1,496

1,480

1,377

1,437

1,374

Total Distribution

6,869

6,885

5,843

5,835

5,307

5,304

1000 HA, 1000 MT, MT/HA