April 23, 2012

South Korea's MFG buys 69,000 tonnes optional origin corn from Cargill

A 69,000-tonne optional original cargo of corn from Cargill Inc. has been purchased this week by Major Feedmill Group (MFG) at US$276.97/tonne, basis cost and freight, for arrival by November 5, trading executives said Friday (Apr 20).

The price is at a US$20/tonne discount to South Korea's July arrival purchases of feed corn.

Earlier this week, South Korea's largest feedmiller, Nonghyup Feed Inc., or Nofi, also purchased a cargo of 65,000 tonnes of optional origin corn from Hamburg-based Alfred C. Toepfer International GmbH at US$296.88/tonne, C&F, for arrival by July 1.

MFG's purchase price is sharply lower because by then US new crop would be available for trade, a Seoul-based trader said.

Southeast Asian buyers are snapping up cargoes of feed grains such as corn and soymeal to take advantage of the latest downward correction in global prices.

Near-month May corn futures on the Chicago Board of Trade, which rose 9% in just three days to end at US$6.5825 a bushel April 3 (amid supply concerns) have since declined and are now trading around US$6.25 a bushel.

On Wednesday (Apr 18) they even fell below US$6.02/bushel on profit-taking and fund selling before rebounding.