Japan Cancels U.S. Wheat Order on GMO Fear.

Japan Cancels U.S. Wheat Order on GMO Fear.

SINGAPORE/TOKYO, May 30 (Reuters)By Naveen Thukral and Risa Maeda.  - A strain of genetically modified wheat found in the United States fuelled concerns over food supplies across Asia on Thursday, with major importer Japan cancelling a tender offer to buy U.S. grain.

Other top Asian wheat importers South Korea, China and the Philippines said they were closely monitoring the situation after the U.S. government found genetically engineered wheat sprouting on a farm in the state of Oregon.

The strain was never approved for sale or consumption.

Asian consumers are keenly sensitive to gene-altered food, with few countries allowing imports of such cereals for human consumption. However, most of the corn and soybean shipped from the U.S. and South America for animal feed is genetically modified.

"We will refrain from buying western white and feed wheat effective today," Toru Hisadome, a Japanese farm ministry official in charge of wheat trading, told Reuters.

An agriculture ministry source in South Korea said the government is reviewing the discovery, adding the country thoroughly inspects products from the United States as part of safety checks.

"I won't be surprised if other countries start cancelling or reducing their purchases of U.S. wheat, particularly Asian countries, putting pressure on wheat demand," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.Read the full story here.

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