May 15, 2007

South Korea denies buying US corn

Corn importers from South Korea has denied Monday (May 14) reports from the US Department of Agriculture last week that it bought more than 1 million tonnes of US corn.

An official from the Korea Feed Association (KFA) said the USDA report was made two or three months ago and that there were no large purchases were made last week.

South Korean buyers expressed concern that the USDA report would influence prices as they are working on a tender of almost 500,000 tonnes of corn for arrival in October and November.

Higher-than-expected prices have hampered their tenders and private bids made in the past few weeks. 

The USDA reported Thursday and Friday that US exporters sold 1.1 million tonnes of corn to South Korea, which included 1.045 million tonnes for delivery in 2006-2007. The marketing year for corn began on Sept. 1.

American exporters should report any US or optional origin export sales activity of at least 100,000 tonnes -- except 20,000 tonnes or more for soybean oil-- made in one day to a single destination by the following business day.

An official from the Major Feedmill Group said it is possible that exporters reported the sales to the USDA when they recently decided on the origin of the corn.

South Korean feed makers bought 1.32 million tonnes of corn from February 22 to March 30 for June-September arrival.