By Jake Liening
Washington state continues its status as a leader in soft white wheat (SW) production, with 85% of its crop grown as soft white wheat. Prized for its low protein content and versatility in pastries, noodles, and crackers, SW remains a strong element of Washington’s export economy, driving strong demand in international markets.
A look at key buyers
Philippines: U.S. wheat and the Philippines have had a long and tenured relationship. This has cultivated a preference among Filipino end-consumers for the taste and quality of high-grade wheat. This relationship has allowed SW to secure a strong position in the Philippine market.
A notable trend in the Philippines is the high bread consumption spurred by long-term influence of Western-style diets that have influenced Filipino food culture. This trend has created an ideal opening for SW. In the Philippines, bakers use SW as a dough improver for texture, and bread products are made with significantly more sugar than in the U.S. to appeal to Filipino consumer preferences. A soft and airy flour roll called pandesal is a common breakfast bread throughout the Philippines. Bread formulations include sugar content of around 17% versus 4% in the U.S.
The country is home to an estimated 35,000 bakeries where 50% of the flour usage is through mechanized bakeries, creating a high demand for consistent, premium flour that can perform reliably in production line operations. Filipino millers rely heavily on U.S. wheat to meet this expectation, further strengthening the trade partnership between the two nations.
In the 2023-24 marketing year, the Philippines imported 43.39 million bushels (1.18 million metric tons (MMT)) of SW, closely aligning with its five-year average of 44.12 million bushels (1.20 MMT). For the current 2024-25 marketing year, as of Jan. 23, year-to-date (YTD) sales reached 40.27 million bushels (1.96 MMT), reflecting a 14% increase over the same period last year. The Philippines’ growing bakery sector, coupled with its established taste for U.S. wheat, ensures its continued role as a key market for Washington’s SW exports.
Japan: Traditionally, Japan has imported a blend of SW called Western White (WW) wheat, which includes over 20% of white club wheat, to produce the highest quality of confectionery products, such as cookies and sponge cakes. WW wheat, mainly produced in Washington state, has over 90% share of the Japanese confectionery flour market, with a minor quantity of lower-protein Japanese wheat being used, too.
The Japan Flour Millers Association and Washington Grain Commission (WGC) established a technical exchange program of club wheat in 2018, working with the U.S. Department of Agriculture’s Western Wheat Quality Laboratory and Washington State University in Pullman to develop and enhance the breeding efforts of high-quality club wheat. The Japan Biscuit Association has also started close interaction with the WGC to share information on the white wheat market.
Japan ranked as the second-largest buyer of SW from Washington in 2023-24, purchasing 22.24 million bushels (605,000 metric tons (MT)). However, this is below Japan’s five-year average of 23.60 million bushels (642,000 MT), which is down 6%. In 2024-25, YTD sales to Japan has reached 21.02 million bushels (572,000 MT), a 12% increase from last year. Japanese buyers consistently value Washington’s SW and club wheat for its premium quality, using it for high quality confectionery products.
South Korea: South Korea is pushing up against record imports of SW, largely due to an increasing demand in its feed market. The combination of competitively priced U.S. wheat, ample supplies, and economical freight rates allows the U.S. to tap into this secondary market.
In the previous year, 2023-24, South Korea purchased 20.99 million bushels (571,000 MT) of SW, representing its base milling industry demand. Anything beyond that figure reflects access to the feed market, a secondary market that can be hard to reach when these conditions do not align.
By mid-January, SW sales to South Korea for the 2024-25 marketing year have surged nearly threefold compared to the 2023-24 total, reaching 54.01 million bushels (1.47 MMT), marking a 211% year-over-year increase. This significant increase suggests that South Korea’s feed demand is nearly as large as its milling demand, though accessing this secondary market is contingent on price, supply, and freight conditions. Once U.S. wheat reaches South Korea’s feed market, it can open the door to favorable access to other regional markets.
Indonesia: Indonesia’s buying patterns reflect the country’s sensitivity to price. In 2023-24, SW struggled to compete with Australian wheat due to a smaller crop in the Pacific Northwest, leaving Indonesia to buy from cheaper alternative markets.
However, the 2024-25 marketing year presented a unique opportunity. A strong U.S. wheat crop coincided with high Australian prices, creating a window where SW became more competitive. Australia’s aggressive export strategy in the first half of its previous marketing year left its farmers hesitant to follow declining wheat prices after the Northern Hemisphere harvest. With Australian prices remaining high, U.S. wheat gained a foothold in Indonesia as the more cost-effective option.
The result is a significant uptick in sales to Indonesia, with YTD purchases of 18.24 million bushels (496,000 MT) — a 29% increase year over year. While this appears to be historically high, it is partly amplified by the relative dip in sales from 2023-24, which totaled 14.12 million bushels (384,000 MT). Indonesia’s renewed interest in U.S. wheat underscores its price sensitivity and the importance of competitive pricing in sustaining this key market.
China: China produces more wheat each year than any other single country and holds about half of the global wheat stocks. This substantial domestic production allows it to dictate its buying strategy, often leveraging global market conditions to secure favorable deals. This unpredictability makes it difficult for exporters like the U.S. to plan for consistent trade.
In 2023-24, China purchased 11.89 million bushels (323,000 MT), which is down 40% compared to its five-year average of 19.71 million bushels (536,000 MT). If there is anything predictable about China’s approach, it is its tendency to act unpredictably in response to shifting economic and geopolitical factors. This underscores the importance of maintaining trade servicing for this market, which, when it swings to the U.S., can be a significant buyer.
Washington’s role in the global market
Washington’s proximity to ports along the Pacific Rim and its reputation for producing high-quality SW continues to provide a competitive edge. By maintaining strong relationships with key buyers overseas and navigating global trade challenges, Washington’s wheat growers remain at the forefront of the industry.
U.S. wheat being competitively priced with ample supplies has put the U.S. up in most markets across the globe. Overall, the total known outstanding sales and accumulated exports of SW for the 2024-25 marketing year total 183.35 million bushels (4.99 MMT) which is 43% above last year’s pace. Considering all of this, it’s truer now than ever that Washington wheat helps feed the world.
This article originally appeared in the March 2025 issue of Wheat Life Magazine.
Jake Liening
Market Development Specialist, Washington Grain Commission
USW Vice President of Communications Steve Mercer and WGC Director of Communication Lori Maricle contributed to this article.