January 23, 2007

South Korea KFA buys 104,000 tonnes feed wheat

The Busan branch of Korea Feed Association, or KFA, has bought 104,000 tonnes of optional-origin feed wheat from trading houses Toepfer and Cargill in private negotiations, a trader in Seoul said Tuesday.

The first shipment of 52,000 tonnes will be supplied by Toepfer at US$209.50/tonne, and will arrive at Inchon on Jun 10.

Cargill will supply the second cargo of 52,000 tonnes, at either the flat price of US$212.25/tonne or at a premium of US$1.25 to the Chicago Board of Trade July contract.

The shipment will arrive at Kunsan or Ulsan ports on Jul 15.

While both the shipments are optional-origin, the trader said it is likely that most of the wheat may be of Chinese origin.