November 21, 2011

Nonghyup Feed buys 55,000 tonnes feed wheat from Cargill

Nonghyup Feed Inc., (Nofi) South Korea's largest feed miller, purchased 55,000 tonnes of feed wheat Friday (Nov 18) from Cargill Inc., around US$254.50/tonne, c&f, for February 15 arrival, trading executives said.

For the first time in more than a year, South Korean buyers have purchased feed wheat on a delivered basis at less than US$255/tonne in a tender, the executives said.

Nofi was seeking another 55,000-tonne cargo, but passed on the offers as the lower price quoted was around US$258/tonne, indicating that East Asian importers are looking for even cheaper purchases amid bumper crops in Australia and the Black Sea region.

South Korean buyers have purchased at least 220,000 tonnes of feed wheat in the last four days and previous deals were between US$259.79/tonne and US$259.89/tonne, C&F. Purchases in end-June were at US$273.90/tonne.