South Korea’s Korea Feed Association (KFA) has issued an international tender to purchase up to 138,000 metric tons of animal feed corn to be sourced from South America or South Africa only, according to European traders.
The deadline for submitting price offers in the tender from the KFA’s Busan section is Tuesday, May 28.
Traders attribute the demand for corn to rising wheat prices due to concerns about weather damage in top exporter Russia. This has led to South Korean importers NOFI and FLC also making large corn purchases on Friday.
The corn is being sought by the KFA for arrival in South Korea in two consignments of between 50,000 to 69,000 tons each.
The first consignment is sought for arrival around September 5, with shipment between July 3 and July 22 if sourced from South America, or between July 18 and August 6 if from South Africa.
The second consignment is sought for arrival around September 30, with shipment between July 28 and August 16 if sourced from South America, or between August 12 and August 31 if from South Africa.
Traders said that offers were sought both in outright prices per ton cost and freight (c&f) included, as well as at a premium over the Chicago July 2024 corn contract (CN24).
This tender highlights the ongoing demand for animal feed corn in South Korea, as the country seeks to secure supplies to meet the needs of its livestock industry.