- South Korea secures 134,000 tons of feed corn via NOFI’s international tender on February 3, sourcing from U.S., South African, and South American origins.
- Prices set a mid-$240s C&F benchmark, with Mitsui and CJ International winning contracts at $243.99 and $242.94 per ton C&F, plus unloading fees.
- Tender volume undershoots by 35%, signaling neutral-to-bearish sentiment for Black Sea exporters amid heightened global competition for Asian feed demand.
South Korea Feed Corn Tender Overview
Nonghyup Feed Inc. (NOFI) in South Korea purchased approximately 134,000 tons of feed corn through an international tender held on February 3. The volume fell around 35% short of the initially targeted 207,000 tons, indicating more cautious buying or price resistance at current levels. The corn was sourced from diversified origins, including the United States, South Africa, and South American suppliers.
Contract Details and Pricing
The awarded contracts were split between Mitsui and CJ International, each securing a Panamax-size cargo with staggered early June delivery windows and slightly different cost structures.
| Buyer | Supplier | Volume (tons) | Origin(s) | Price (C&F, $/ton) | Unloading Cost ($/ton) | Total Landed Cost ($/ton) | Delivery Window |
|---|---|---|---|---|---|---|---|
| NOFI (South Korea) | Mitsui | 67,000 | U.S./South Africa/South America | 243.99 | 1.50 | 245.49 | By June 1, 2024 |
| NOFI (South Korea) | CJ International | 67,000 | U.S./South Africa/South America | 242.94 | 1.44 | 244.38 | By June 10, 2024 |
| Total Purchased | 134,000 | Mixed | Planned volume was 207,000 tons (approx. 35% shortfall) | Early June 2024 | |||
Implications for Global Corn Trade
The tender outcome is broadly neutral-to-bearish for Black Sea corn exporters. NOFI’s decision to stop 35% below its planned volume, while diversifying across U.S., South African, and South American origins, underscores intense competition for Asian feed demand. With South American harvests ramping up and freight economics favoring Atlantic and Southern Hemisphere origins into Asia, Black Sea suppliers will need to sharpen price offers to stay relevant.
C&F prices in the mid-$240s per ton range, plus modest unloading fees, now serve as a reference point for forward negotiations into South Korea and neighboring Asian markets. Any sustained price premium from the Black Sea relative to this benchmark risks displacement as alternative origins continue to offer competitive landed costs.
Source: Market Data
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