July 14, 2004

South Korea Feed Assoc Skips Buying Corn In Tue Tender

The Korea Feed Association in Seoul decided against buying 105,000 metric tons of corn in a tender held Tuesday, as the offers were too high, a KFA official revealed.
 
Higher ocean freight rates resulted in the higher-than-expected offers, he added.
 
"We expected (offers of) under $155 a ton, but due to the higher ocean freight rates, every seller offered over $157/ton," he said.
 
Freight rates for smaller vessels with a capacity of 20,000 tons are being quoted at more than $50/ton from Pacific Northwest to Japan, while Panamax-sized cargoes serving the same route are being offered above $55/ton, up from last week's $45/ton, traders said Monday.
 
The KFA is hoping that freight rates will drop, and may issue another buy tender next week, the official said.