February 17, 2012

South Korea's MFG buys 134,000 tonnes corn from Cargill

Two cargoes of corn totalling 134,000 tonnes from Cargill have been purchased by South Korea's Major Feedmill Group (MFG), trading executives said Thursday (Feb 16).

MFG bought 69,000 tonnes of optional-origin corn at US$316.34/tonne, cost and freight, for arrival by May 31. It bought another 65,000 tonnes of US-origin corn at US$320.66/tonne, C&F, for June 1 arrival.

Charges for delivering part of the cargoes at a second port are included in the price.

South Korea, one of the world's biggest importers of feed grains, has purchased at least two million tonnes since January 6, including 955,500 tonnes of corn.

Separately, South Korea's largest feed miller, Nonghyup Feed Inc., has purchased three cargoes totalling 189,000 tonnes of US corn: 66,000 tonnes from Cargill at US$319.78/tonne; 55,000 tonnes from Archer Daniels Midland at US$321.83/tonne; and 68,000 tonnes from Alred C. Toepfer International at US$319.88/tonne. All were on a cost and freight basis for arrival at end-May and June.

Prices are as much as US$16/tonne higher than the cost of South Korea's purchases of US corn four weeks ago.