CHS, Bunge among sellers as S Korea's NOFI, FLC tender for corn

South Korea’s feed sector picked up 130,000 mt of corn Wednesday, after fresh round of tenders on the back of heavy price falls that wiped 10% off the value of Chicago corn futures overnight.

The country’s biggest feed maker, Nonghyup Feed Inc (NOFI) returned to buy corn for 2020 delivery for the second consecutive day, and was joined by the Feed Leaders Committee (FLC), according to market sources.

NOFI is said to have bought 69,000 mt from Bunge at $201.07/mt after further negotiations, with the origin said to be South American. 

FLC bought 65,000 mt from US co-op CHS at $200.99/mt for arrival on January 15. 

South Korea's feed sector has now bought 530,000 mt of corn since the beginning of August, with over half – 267,000 mt  – purchased for 2020 delivery.

NOFI was amongst companies buying on Tuesday, picking up 68,000 mt of corn and 60,000 mt of soymeal at $203/mt CFR and $364.50/mt CFR respectively.

With further overnight falls in corn futures, South Korea’s feed sector is looking to lock in 2020 supply ahead of a national holiday on Thursday, with private business also expected to be undertaken in the coming hours.

Corn prices plummeted after the USDA revealed a bigger-than-expected outlook for the US corn crop, predicting final production of 353 million mt.

That came after an apparently disastrous planting campaign prevented farmers from reaching their fields for weeks due to flooding, raising fears that the US corn crop could be as low as 300 million mt.

For more information on South Korea’s corn buying, please see our Tender Dashboard.