August 15, 2008

South Korean feedmakers are back in the market for US corn after staying away for much of the summer due to high prices.

Korea Feed Group is seeking four cargoes of US corn, totaling 200,000 tonnes, for December arrival to the port of Incheon, traders said on Thursday.

The tender closed Thursday.

The auction follows a purchase of 45,000 tonnes of US corn Wednesday by Major Feedmill Group at US$325.5 per tonne including cost and freight.

South Korean feedmakers, in the face of high corn prices had until recently switched to alternatives such as wheat for their feed needs as US corn reached record high prices in late June and early July.

Since then, US corn prices have fallen by a fifth as favourable weather conditions improved prospects of the US corn crop.