South Korea's buys up to 70,000 tons of corn
HAMBURG: The Korea Feed Association (KFA) in South Korea is believed to have purchased about 65,000 to 70,000 metric tons of animal feed corn to be sourced from optional origins in a private deal on Wednesday without issuing an international tender, European traders said on Thursday.
The corn was believed to have been purchased by the KFA's Incheon section from trading house CHS at an estimated outright price of $242.90 a ton, cost and freight (c&f) included, for shipment to one port.
The KFA's Incheon section is also called the Feed Buyers' Group. The corn is for arrival in South Korea around August 30. Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.
Shipment is between July 15 and August 15 if the corn is sourced from the US Pacific Northwest coast, and between June 21 and July 20 if sourced from the US Gulf.
Shipments from South America are sought between June 21 and July 20, or between July 1-31 from South Africa. The volume to be supplied in the 65,000 to 70,000 ton range must be declared by June 1. The deal continues South Korean importers' heavy corn
purchasing in the past two weeks, following declines in Chicago corn prices.
South Korean buying is traditionally brisk ahead of the monthly world grains and oilseeds supply and demand report from the US Department of Agriculture (USDA), which can cause market turbulence.
The USDA report is due on Monday, May 12. A separate tender from South Korea's Major Feedmill Group (MFG) to purchase up to 140,000 tons of feed corn sourced only from South America or South Africa also took place on Wednesday.
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