- South Korea’s MFG booked 50,000 tons of soybean meal via an international tender on May 7, 2024, securing 83% of its initial 60,000-ton target.
- COFCO won the full volume at a price of $414.79 per ton C&F, with delivery to South Korea scheduled in a single shipment by August 3, 2024.
- South American origin is expected to dominate the cargo mix, underscoring regional competitiveness against Black Sea alternatives.
- Neutral to bearish implications for Black Sea exporters as Asian buyers continue to favor South American logistics and supply reliability.
- The 10,000-ton shortfall from the original tender volume may signal price resistance or supply-side constraints during the May–August window.
South Korea Secures Soybean Meal from COFCO
South Korea’s Major Feedmill Group (MFG) has secured approximately 50,000 tons of soybean meal through an international tender held on May 7, 2024. The volume represents around 83% of MFG’s initially targeted 60,000 tons, indicating a partial fill of its stated procurement needs for the period.
COFCO captured the entire awarded volume at a price of $414.79 per ton on a C&F basis, inclusive of port unloading fees. The cargo is scheduled to arrive in South Korea by August 3, 2024, in a single shipment, offering buyers logistical simplicity and clear timing for feed formulation planning.
Origin and Logistics Outlook
Market participants expect South American-origin soybean meal to account for the bulk of the shipment, reflecting the region’s strong export position into Northeast Asia. The tender allowed for any origin, leaving room for potential blending from Argentine, American, and Chinese sources, but South America is still anticipated to dominate due to price and freight advantages.
The 10,000-ton gap versus the original 60,000-ton tender volume may point to either buyer price resistance at current levels or limitations in available supply within the desired shipment window. This shortfall could prompt follow-up spot or tender activity if feed demand remains firm into late summer.
Price Benchmark and Market Impact
| Buyer | Supplier | Volume (tons) | Price (C&F) | Delivery Deadline | Tender Target (tons) |
|---|---|---|---|---|---|
| Major Feedmill Group (MFG), South Korea | COFCO | 50,000 | $414.79/ton (incl. port unloading) | By August 3, 2024 | 60,000 |
The $414.79 per ton C&F price level now serves as a reference point for soybean meal procurement into South Korea and the broader Northeast Asian market for May–August deliveries. Traders and feed producers are likely to use this tender result as a benchmark for evaluating upcoming offers and hedging strategies.
Implications for Black Sea Soybean Meal
The outcome is neutral to bearish for Black Sea origin soybean meal, as it underscores continued buyer preference for South American supply into Asia. South America’s established export infrastructure and competitive freight rates continue to challenge Black Sea exporters seeking to expand market share in Northeast Asia.
Unless Black Sea sellers can consistently match or undercut South American offers on a delivered basis, or offer superior shipment flexibility, tenders like this one suggest that South American origins will remain the default choice for many Asian feed buyers in the near term.
Source: Market Data
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