According to European traders, South Korea’s Major Feedmill Group (MFG) is believed to have rejected all offers and made no purchase in an international tender to buy up to 140,000 metric tons of animal feed corn on Friday.
The tender had sought corn from South America or South Africa only for December arrival in South Korea. The lowest price offered was believed to be $239.90 per ton c&f plus a $1.50 per ton surcharge for additional port unloading, which was submitted by trading house ADM.
By passing on the tender, MFG did not make any corn purchases. This suggests that the prices offered were not low enough to meet MFG’s requirements or expectations.
The lack of a purchase in this tender by a major South Korean feed buyer like MFG could indicate that the global corn market remains tight, with suppliers unable or unwilling to offer corn at prices acceptable to the buyer. This could have implications for feed costs and livestock production in South Korea.
It is not uncommon for buyers to reject all bids in a tender if the prices are deemed too high. The decision by MFG to pass on this tender highlights the challenging market conditions currently faced by major feed grain importers like South Korea.