January 20, 2012

Mostly of US origin, South Korean feed millers have increased purchases of feed grains, buying four cargoes totalling 230,000 tonnes of corn, trading executives said Thursday (Jan 19).

South Korea, one of the world's largest importers of feed grains, has purchased nearly 800,000 tonnes since January 6, including 338,000 tonnes of corn, taking advantage of the latest slump in prices. On a delivered basis at South Korean ports, US corn is now around US$20 cheaper than a week ago.

The March corn futures contract on the Chicago Board of Trade has fallen below key psychological support at US$6 a bushel. It fell 1.7% Wednesday to settle at a one-month low of US$5.9350 a bushel.

Each of South Korea's four major feed grain importers bought a cargo of corn this week: Nonghyup Feed Inc., or Nofi, the country's largest feed miller, bought a 55,000-tonne cargo of US origin at a premium of US$1.9616 over the CBOT May futures contract for arrival by April 25; the Busan branch of the Korea Feed Association bought another US-origin 55,000-tonne corn cargo at US$305.90/tonne, cost and freight, for arrival by April 15 (Nofi had bought a cargo on January 10 at US$325.58/tonne); Major Feedmill Group bought 70,000 tonnes of US corn at US$307.99/tonne, C&F, for arrival by April 20; and the Seoul-based Korea Feed Association bought 50,000 tonnes of optional-origin corn at US$299.90/tonne, C&F.