August 24, 2023

 

South Korea's NOFI snaps up estimated 68,000 tonnes of corn for feed use

 

 

Leading South Korean animal feed producer Nonghyup Feed Inc. (NOFI) has bought an estimated 68,000 tonnes of animal feed corn in an international tender seeking up to 138,000 tonnes, European traders said.

 

It was expected to be sourced from either South America or South Africa.

 

The corn was bought at an estimated premium of 164 US cents a bushel c&f over the Chicago December corn contract CZ3 plus a surcharge of US$1.50 a tonne for additional port unloading. The seller was believed to be trading house Olam.

 

The corn was purchased for arrival in South Korea around December 25.

 

If sourced from South America, the tender sought shipment between October 27 and November 15 and if from South Africa, between November 6 and November 25. If from South Africa, only 52,000 tonnes need to be supplied.

 

No purchase was reported of a second consignment also sought for arrival around December 17.

 

Traders said Asian purchasing interest was sparked after Chicago corn futures Cv1 fell sharply this week after crop inspection tours in the US gave positive reports on US corn conditions.

 

Taiwan's MFIG purchasing group also bought about 65,000 tonnes of animal feed corn expected to be sourced from Brazil in an international tender on August 23.

 

South Korea's Major Feedmill Group (MFG) purchased an estimated 66,000 tonnes in a private deal late on August 22 without issuing an international tender.

- Reuters