November 6, 2003

South Korea Shows Renewed Interest in US Corn
 

South Korea is showing renewed interest in U.S. corn amid talk that its primary supplier China might be halting exports from next year, grain traders said on Wednesday.

South Korea avoided U.S. corn nearly three years ago after a genetically modified variety of corn not approved for human consumption was found in the American food chain in the fall of 2000.

The country's Major Feedmills Group bought 52,500 tons of U.S. corn on Wednesday, its first purchase of a Panamax-size cargo in about two years, for arrival on January 20 2004.

Exporters said there was talk that South Korean companies had purchased or were looking to buy up to four more Panamax cargoes for shipment in February and March.

"There is talk that they are looking for up to four Panamax cargoes," said one exporter who does regular business with Asian importers, adding that he was expecting any shipment to be from the Pacific Northwest.

CBOT corn futures were supported by the talk of fresh South Korean demand. The December contract was up 5-1/4 cents at $2.37-1/2 in the final half-hour of trade.

Grains analyst Dan Basse, president of research company AgResource Company, said:"I have heard that they bought two to three Panamax cargoes."

South Korea was one of the top importers of U.S. corn until the StarLink incident, since then the country sourced its corn supplies from China. 

China, however, is widely believed to be halting its corn exports from January 2004 in a bid to cool rising domestic prices.