South Korea's Korea Corn Processing Industry Association (KOCOPIA) purchased about 120,000 tonnes of corn to be sourced from optional origins in a tender on Tuesday, continuing a series of large purchases by South Korean buyers, European traders said. The deal and a separate purchase by animal feed maker NOFI of 204,000 tonnes on Tuesday brought South Korean corn purchases in the last week to a hefty total of just over 1 million tonnes.
The large purchases were also made in the past week by importers including the Major Feedmill Group and Korea Feed Association. "I think there is concern about drought hitting the corn crop in Argentina and delay's to Brazil's soybean harvest cutting Brazilian corn plantings," one European trader said. "The price outlook for corn remains bullish after the highs last week."
US benchmark corn futures jumped to a seven-month high on Thursday after US Department of Agriculture estimates showed smaller-than-expected stockpiles in the wake of increased US exports and demand for ethanol. Argentine has been hit by a four-month drought that shows no signs of abating, farmers and analysts said on Monday.
The KOCOPIA purchase on Tuesday involved 60,000 tonnes bought from trading house Posco-Daewoo at $232.94 a tonne c&f including surcharge for additional port unloading. The consignment was for arrival in South Korea around June 15. Shipment was between April 20 to May 10 if sourced from the US Gulf, between May 10 to May 30 if from the US Pacific North West Coast, between April 15 to May 5 from Brazil, between April 20 and May 10 from Europe and between April 25 and May 15 if from South Africa.
The other 60,000 tonnes was bought from trading house CJ International at $231.25 a tonne c&f including surcharge for additional port unloading. The consignment was for arrival in South Korea around June 30. Shipment was between May 5 and May 25 if from the US Gulf, between May 25 to June 15 if from the US Pacific North West Coast, between May 1 to May 20 from Brazil, between May 5 and May 25 from Europe and between May 10 and May 30 from South Africa.