June 5, 2024

Nonghyup Feed secures 60,000 metric tonnes of animal feed wheat

Leading South Korean animal feed group, Nonghyup Feed Inc (NOFI), has purchased approximately 60,000 metric tonnes of animal feed wheat in a private transaction, bypassing an international tender, according to European traders, Reuters reported.

The wheat can be sourced from various optional origins, the traders indicated. The price was estimated at US$288 per ton c&f, with an additional surcharge of US$1.50 per tonne for extra port unloading. The seller was reported to be trading house ADM.

The shipment is scheduled to arrive in South Korea around September 1, 2024. If sourced from the US Pacific Northwest coast, Australia, or Canada, the shipment period is between July 18 and August 17. If sourced from the Black Sea with shipment via the Red Sea to Asia, the period is from July 1 to August 1. If transiting via the Cape of Good Hope, the period is from June 13 to July 13. From the European Union, shipments via the Red Sea to Asia will occur between June 24 and July 24, while those via the Cape of Good Hope are expected between June 16 and July 16. For shipments from the US Gulf, the period is from June 30 to July 30.

Due to repeated attacks on Red Sea shipping by Yemen's Houthis, many ships are opting for the longer transit route to Asia via the Cape of Good Hope in South Africa. Reports reflect assessments from traders, and further estimates of prices and volumes may be updated later.

In a related development, South Korea's Major Feedmill Group (MFG) purchased approximately 63,000 metric tonnes of feed wheat in an international tender from ADM at the same price, traders reported.

-      Reuters