Leading South Korean animal feed maker Nonghyup Feed Inc. (NOFI) has purchased an estimated 133,000 metric tons of animal feed corn in an international tender, according to European traders.
The corn is expected to be sourced from South America or South Africa and was bought in two consignments. Both consignments were purchased at an estimated outright price of $241.75 per ton, cost and freight (c&f) included, plus a premium over Chicago corn futures. The sellers were believed to be trading houses Mitsui and Cargill.
An additional $1.50 per ton surcharge for extra port unloading was also added to the price. The corn is all expected to arrive in South Korea in October.
The reports reflect assessments from traders, and further estimates of prices and volumes may still be possible later.
NOFI’s purchase of a significant volume of feed corn in the international market underscores the continued demand for animal feed in South Korea, a major livestock producer. The country relies on imports to meet a substantial portion of its feed grain requirements.
This tender award highlights the role of global trade in meeting the feed needs of South Korea’s animal husbandry industry, as the country taps into supplies from major corn-exporting regions like South America and South Africa.