December 22, 2011

South Korean feedmills purchase 140,000 tonnes corn cargoes

Feedmillers in South Korea have bought at least three corn shipments, for arrival in March and April, amounting to 140,000 tonnes, trading executives said Wednesday (Dec 21).

They said Seoul-based Korea Feed Association bought a cargo of 55,000 tonnes South American corn from Noble Resources at around US$279.80/tonne, basis cost and freight for arrival by April 10.

Major Feedmill Group purchased 55,000 tonnes optional origin corn from Noble Resources at around US$283.90/tonne, C&F for arrival by March 25.

Nonghyup Feed Inc., or Nofi, purchased 30,000 tonnes US corn from CJ International at US$297.50/tonne, C&F for arrival by March 5. Nofi was seeking more than 300,000 tonnes corn but passed on offers between US$298 and US$304/tonne, C&F.

Traders said these deals were finalised a few days ago, before the current rally, which has pushed up the corn cash prices by more than US$10/tonne, on a delivered basis.

A month ago, Nofi had bought optional origin corn at US$295/tonne and US corn at US$315/tonne, C&F.