NOFI bails, KFA buys as picture mixed for South Korea’s corn buyers

Tender results for a spate of South Korean corn buyers show a mixed picture, as trading sources warn that price-sensitive end users are growing wary of higher corn prices.

Nonghyup Feed (NOFI), which was heard in the market Thursday looking for a cargo of 68,000 mt for delivery in June, was said to have passed on the offers it received, with the lowest-priced cargo heard at $203.75/mt, according to market sources.

However, Korea Feed Association (KFA) was heard to have been looking for one 60,000 mt cargo Thursday, but has picked up two while the Feed Leaders Committee (FLC) was also heard to have secured a cargo privately.

For KFA, the sellers were said to be Pan Ocean Trading and Bunge with most sources anticipating the supply to come from the US Pacific Northwest.

“Most business for March and April is already in the book, for May and June buyers keep asking for US and South America, but they will wait,” one market source said.

“Spot logistics in the PNW are in a mess, so US prices are converging towards Argentina, but South America remains more expensive and has more upside basis on current weather maps,” the source continued.

“There’s more demand coming to the PNW and there are limited export slots available, so there’s plenty of upside… Buyers are not coming to terms with the increased prices,” a second source said.