February 13, 2004

South Korea's Feedmill Group Buys 52,500 MT Corn

South Korea's Major Feedmill Group, or MFG, has decided to scale down its corn purchases, choosing to buy just one cargo - or 52,500 metric tons - of corn, a senior official said Friday.

In a tender held Thursday, the MFG bought corn from Cargill Inc. It will buy U.S. and/or South American corn at $184.80/ton, cost and freight basis. But if the corn is sourced from China, he said MFG will pay $174.98/ton, C&F. Arrival is April 30 at Incheon port.

The group was supposed to buy two cargoes - equivalent to 105,000 tons, but the official said the group opted to buy just one cargo.

He said the group is anticipating corn prices will fall further due to the bird flu epidemic that's pressuring both the poultry and feed markets.

The MFG plans to hold another tender, for 52,500 tons of corn, next week. The official said members of MFG haven't fixed a date for the tender.