February 12, 2004

South Korea's Feedmill Group Buys 105,000 MT Corn From Cargill

South Korea's Major Feedmill Group has decided to buy 105,000 metric tons of U.S. or Chinese corn, seller's option, from Cargill Inc., an official from the group said Thursday.

It will buy U.S. corn at $184.80/ton, cost and freight basis, or Chinese corn at $174.80/ton, cost and freight basis, he said.

The shipment will arrive in two cargoes of 52,500 tons each, with the first cargo to arrive in Incheon port April 20 and the other to arrive in Incheon and Kunsan ports April 30, he said.

For the second cargo, the group will pay a bond charge of $2/ton, he said.

One option of dividing the second cargo is to have 17,500 tons arriving at Incheon and the remaining 35,000 tons arriving at Kunsan, he said.

In this case, the buyer will pay an extra port charge of $3/ton for the portion arriving at Kunsan, he said.