March 22, 2004

Korea Feed Association To Buy 50,000 MT Soymeal

The Korea Feed Association, or KFA, is seeking to buy soybean meal as early as this week in case prices rise further, an official said on Monday.
 
"This week, we are looking to buy about 50,000 metric tons of U.S. or South American origin soymeal," he said.
 
After the KFA decided not to buy soymeal in a March 18 tender, soymeal prices have continued to rise on supply worries, said the official.
 
Soymeal futures on the Chicago Board of Trade rallied to new contract highs Friday, on bullish forecasts that the Brazilian 2003-04 crop will be smaller than expected.
 
The May contract finished up $0.30 higher at $314.20 a short ton Friday.
 
In the physical market, the KFA official said he expects to see soymeal prices at over $390/ton this week, compared with offers of $380/ton received in the March 18 tender.
 
"Some people are saying that this week, the price will be $400/ton," he said.
 
Due to the focus on soymeal this week, the KFA isn't likely to buy wheat or corn, which it bought last week in private talks, he said.
 
Last week, it bought 40,000 tons of Australian feed wheat from Wilmar, at $192/ton, cost and freight basis to Inchon, for arrival Sept. 20, he said.
 
In addition, it bought 52,500 tons of corn from Bunge, worldwide origin at seller's option, for Sept. 5 arrival in Inchon, he said.
 
Prices are set at $183.94/ton for Chinese corn, while corn of U.S. or South American origin is $193.94/ton. All prices are on a cost and freight basis.