August 2, 2005

USDA: South Korea quarterly grain and feed trade report

In South Korea, MY 2004/05 wheat imports are expected to total 3.47 MMT, which are 133,000 MT more than last year's. The increase is due mainly to greater than expected feed wheat imports. 

To date, feed millers have mostly purchased feed wheat on an optional origin basis for early December delivery. Contractual quantities of feed wheat to be delivered during the period from July to early December 2005 have reached 610,000 MT.  Imports of feed wheat will continue at a pace similar to that of imports during the same period last year.

Total projected MY 2005/06 Korean wheat imports remain unchanged from the previous forecast of 3.5 MMT with the importation of feed wheat increasing to 1.1 MMT.   

To reflect a slower pace of imports, FAS/Seoul has reduced its MY 2004/05 corn import estimate to 8.55 MMT, down 500,000 MT from the previous estimate of 9.05 MMT. 

The 8.55 MMT estimate represents 6.7 MMT of feed corn imports. During the first nine months of MY 2003/04, feed corn consumption has declined to 4.96 MMT, down 2.7 percent. For the first nine months of MY 2004/05 (October 2004 to June 2005), Korea imported 1.86 MMT of corn from the United States, consisting of 1.69 MMT of feed corn. 

The Korea Feed Association (KFA) has filed a claim against suppliers who delivered 213,363 MT of U.S. No. 3 yellow corn from February through April 2005, alleging that upon arrival in Korea, moisture and broken kernel content exceeded KFA contract provisions. 

Because of problems with high broken content, some feed millers who need high quality corn to produce flaked and rolled corn rations, are now looking for sources of premium-priced corn that can be guaranteed to arrive without a high content of broken kernels.

For the full USDA report, click here.