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Japan hopes US won't limit grain exports

TOKYO: Japan said on Monday it hoped the United States would not resort to any limits on grain exports in view of recent low crop stockpiles.

"If they resort to any kind of export ban, it will severely damage their credibility as a stable grain exporter. I believe they will not take such action," Vice Agriculture Minister Hirofumi Ueno told reporters.

US Agriculture Secretary Dan Glickman said late last week he would not impose a ban on U.S. grain exports because of falling stocks.

But markets have remained uneasy about political pressures that might result if bad weather, which has damaged the winter U.S. winter wheat crop, were to also affect corn and soybeans.

An embargo might become a popular idea if U.S. food prices abruptly climbed, some industry officials said.

"I see no indication so far that Washington is considering a grain export embargo," the vice minister said.

Japan is the largest export market for U.S. agricultural products. Finance Ministry data shows that last year, Japan imported 16.359 million tonnes of corn, of which 16.036 million tonnes was from the United States.-Reuter