November 26, 2010

Kocopia purchases 48,000 tonnes better-grade corn

The Korean Corn Processing Industry Association (Kocopia) has bought 48,000 tonnes of US No. 2 or better-grade corn of optional origin at US$288.10/tonne, basis c&f, trading executives said Thursday (Nov 25).

The cargo was purchased from Louis Dreyfus Commodities and is set for arrival by April 25, 2011.

They said the price includes a premium of US$1.50/tonne for unloading part of the cargo at a second port. Traders said buying is sluggish because the US is closed Thursday (Nov 25) for a public holiday.

"Traders want to wait before buying more cargoes, until they get fresh price leads," said a Seoul-based importer.

Last week, Kocopia purchased another cargo of 55,000 tonnes of US No. 2 or better grade corn from Louis Dreyfus around US$288/tonne, c&f.

Physical corn prices have declined significantly this month tracking a fall in futures on the CBOT.

On November 9, Kocopia had purchased a cargo of US No. 2 or better grade corn from Cargill at US$318.50/tonne, c&f.

According to an USDA forecast, its corn imports may rise 6.4% to a new high of nine million tonnes in 2010-11.