S Korea Buys 230,000 Tons Corn As Prices Fall

S Korea Buys 230,000 Tons Corn As Prices Fall

South Korean feedmillers have stepped up purchases of feed grains, buying four cargoes totaling 230,000 metric tons of corn, mostly of U.S. origin, trading executives said.

South Korea, one of the world’s largest importers of feed grains, has purchased nearly 800,000 tons since Jan. 6, including 338,000 tons of corn, taking advantage of the latest slump in prices. On a delivered basis at South Korean ports, U.S. corn is now around $20 cheaper than a week ago.

The March corn futures contract on the Chicago Board of Trade has fallen below key psychological support at $6 a bushel. It fell 1.7% Wednesday to settle at a one-month low of $5.9350 a bushel.

Each of South Korea’s four major feed grain importers bought a cargo of corn this week: Nonghyup Feed Inc., or Nofi, the country’s largest feedmiller, bought a 55,000-ton cargo of U.S. origin at a premium of 196.16 cents over the CBOT May futures contract for arrival by April 25; the Busan branch of the Korea Feed Association bought another U.S.-origin 55,000-ton corn cargo at $305.90/ton, cost and freight, for arrival by April 15 (Nofi had bought a cargo on Jan. 10 at $325.58/ton); Major Feedmill Group bought 70,000 tons of U.S. corn at $307.99/ton, C&F, for arrival by April 20; and the Seoul-based Korea Feed Association bought 50,000 tons of optional-origin corn at $299.90/ton, C&F.