March 5, 2012

Trading executives said that South Korea's Nonghyup Feed Inc., or Nofi, Friday (Mar 2) bought two cargoes totalling 126,000 tonnes of US corn on cost and freight basis from STX Corp.

Nofi bought a cargo of 63,000 tonnes, for arrival by July 10, at US$1.7197 a bushel premium over the July futures contract on the Chicago Board of Trade. It bought another cargo of the same volume, for arrival by July 20, at US$1.7348/bushel premium over the July contract.

CBOT July corn futures are currently trading around US$6.53/bushel.

"Nofi bought the cargoes on a premium basis rather than a flat price because it probably expect corn prices to decline as US plantings start next month," said a Seoul-based executive with a global commodity trading company.

South Korea, one of the world's biggest importers of feed grains, has purchased at least 2.35 million tonnes since January 6, including 1.1 million tonnes of corn.