- South Korea’s MFG bought 65,000 tons of feed wheat in a private deal with Cargill.
- Price set at $264.30 per ton C&F, delivery scheduled for March 2026.
- Agreement strictly excludes wheat of Russian origin (along with China, Pakistan, Argentina, and Denmark).
- This distant-dated deal acts as a forward price marker but does not indicate near-term market direction.
- Origin restrictions, especially exclusion of Russia, may shape long-term trade patterns.
Market Update
South Korea’s Major Feedmill Group (MFG) finalized the purchase of around 65,000 tons of feed wheat from Cargill in a private transaction, bypassing the traditional public tender process. The contract price is $264.30 per ton C&F, with an extra $1.50 per ton added for unloading at the port. Delivery is scheduled for March 5, 2026. According to the terms, origins are flexible except for explicit exclusions: Russia, China, Pakistan, Argentina, and Denmark.
| Volume | Price (C&F) | Unloading Fee | Delivery Date | Excluded Origins |
|---|---|---|---|---|
| 65,000 tons | $264.30/ton | $1.50/ton | March 5, 2026 | Russia, China, Pakistan, Argentina, Denmark |
Analysis
The exclusion of Russian wheat in this long-dated, optional-origin contract stands out for Black Sea exporters. Even though the delivery is far in the future and the agreement doesn’t affect current spot wheat prices, it signals that certain buyers are ready to embed origin bans into long-term contracts. This could affect future demand patterns, particularly for Russian wheat in the South Korean feed sector. Overall, the deal’s price gives a forward reference point for trade but isn’t seen as relevant for immediate price discovery. The underlying sentiment for Black Sea wheat prices remains neutral, although the origin clause hints at potential challenges for Russian exporters down the road.
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