July 4, 2023

South Korea's feed association makes private purchase of animal feed corn

The Korea Feed Association (KFA) Busan section in South Korea has acquired approximately 66,000 metric tonnes of animal feed corn in a private deal, bypassing the need for an international tender, according to European traders, Hellenic Shipping News reported.

The KFA's Busan section had rejected offers and refrained from making any purchases in an international tender for corn. However, following a drop in Chicago corn futures to 2-1/2 year lows late on Friday, the association re-entered the market, leading to the private deal, the traders said.

The origin of the corn involved in the private deal is expected to be optionally sourced from either South America or South Africa, with the seller having the freedom to choose the origin.

The purchase was made at an estimated price of $243.75 per metric tonne c&f, along with a $1.25 per tonne surcharge for additional port unloading. It is believed that the trading house Cargill acted as the seller in this transaction.

The shipment is scheduled to take place between September 7 and 26, 2023 with the arrival in South Korea anticipated around November 5, 2023. If the corn is sourced from South Africa, only 50,000 metric tonnes will need to be supplied.

-      Hellenic Shipping News