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The Korea Feed Association (KFA) bought about 63,000 tonnes of corn in an international tender that closed on Friday, continuing brisk Asian corn purchasing after prices fell, European traders said.

The tender had sought corn from optional origins, but the purchase was expected to be sourced from South America.

It was bought by the KFA's Busan section in one consignment at about $202.47 a tonne c&f plus a $1.25 a tonne surcharge for additional port unloading. The corn is for arrival in South Korea around Jan. 15, 2020. The seller was believed to be trading house CJ International.

If, as expected, the corn purchased is sourced from South America, shipment would be between Nov. 1 and November 30. From other origins, the tender had sought shipment between Dec. 12 and Dec. 31 if sourced from the US Pacific Northwest Coast, between Nov. 22 and Dec. 11 if from the US Gulf or east Europe or between Nov. 27 and Dec. 16 if from South Africa.

Asian corn purchase interest was generated after Chicago corn futures fell around 11% this week, hitting three-year lows after the US Department of Agriculture on Monday forecast a bigger than expected US harvest.

Copyright Reuters, 2019


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