February 27, 2012

South Korea's MFG purchases 110,000 tonnes of Australian feed wheat

South Korea's Major Feedmill Group (MFG) has bought two cargoes of Australian feed wheat totalling 110,000 tonnes from GrainCorp at US$289.90/tonne, sources said Friday (Feb 24).

Shipments are scheduled to arrive on June 25 and 30, basis cost and freight. There is an additional charge of US$1.50/tonne, if part of the cargo is unloaded at a second port, but prices are lower than the last purchase.

On February 9, the wheat purchase cost of South Korean feedmillers had hit an over nine-month high when MFG bought four cargoes at US$301, US$296.75, US$297.65 and US$298.50 a tonne and Korea Feed Association, took one cargo at US$299.50/tonne, C&F.

South Korea, one of the world's largest feed grains buyer, has purchased almost 2.2 million tonnes, including 940,000 tonnes of feed wheat, since January 6, mostly to cover its requirements for the second quarter.