Corn price falls unleash private buying from Korea’s feed sector

Tender-based buying in South Korea's corn import market has unleashed a raft of private buying among the country's feed makers, as the Major Feedmill Group (MFG) and Feed Leaders Committee (FLC) followed the lead of a rival associationto book 203,000 mt of corn in deals with ADM and CHS, trade sources told Agricensus Friday.

MFG booked two parcels of South American corn, each 69,000 mt, having paid a 255 cent premium to the CBOT September corn contract, which equated to $331.99/mt, plus a $1.50/mt for two port discharge.

The seller is believed to have been ADM and the cargoes are for arrival by September 14 and 21.

Loading windows were between July 17-August 5 and July 24-August 12.

FLC also bought one corn cargo from CHS at $335.50/mt CFR South Korea, plus a $1.25/mt for discharge in the second port.

The cargo is for delivery by September 20.

Both moves came after rival feed making group Korea Feed Association (KFA) closed a tender to buy 60,000 mt of corn from Cofco earlier today. 

For more information on South Korea's grains buying, please see our Tender Dashboard.