Key Takeaways
- South Korean Feed Association (KFA) purchased 55,000 tons of U.S. feed corn in an international tender on May 15.
- The deal was concluded at $276.42 per ton on a C&F basis, plus an additional $1 per ton for port unloading.
- ETG trading house will supply the full volume in a single shipment, scheduled to arrive by August 30.
- The transaction is broadly neutral for Black Sea corn markets but sets a competitive benchmark for alternative origins.
Market Update
The South Korean Feed Association (KFA) finalized an international tender on May 15, securing approximately 55,000 tons of feed corn from U.S. origins, according to European traders. The agreed price was $276.42 per ton on a C&F basis, with an additional port unloading fee of $1 per ton, bringing the total landed cost to $277.42 per ton.
ETG trading house was awarded the contract and will deliver the entire volume in a single shipment. The cargo is expected to arrive at South Korean ports no later than August 30 of this year, ensuring coverage of near-term feed demand.
Price Details
| Item | Quantity | Price (US$/ton) | Notes |
|---|---|---|---|
| U.S. Feed Corn (C&F) | 55,000 tons | $276.42 | Contract price, C&F basis |
| Port Unloading Fee | 55,000 tons | $1.00 | Additional charge per ton |
| Total Landed Cost | 55,000 tons | $277.42 | C&F plus unloading |
Market Analysis
The purchase underscores ongoing robust Asian demand for feed corn, with South Korea opting for U.S. origin in this tender. The total landed cost of $277.42 per ton establishes a clear reference point for other exporters competing into the South Korean market.
For Black Sea suppliers, including Ukrainian and Russian exporters, this tender outcome is broadly neutral in the near term but strategically important. To gain market share in upcoming tenders, especially as new crop supplies become available, Black Sea origins will likely need to offer either price discounts relative to U.S. corn or demonstrate superior logistics reliability and execution into South Korean ports.
Market participants should monitor whether subsequent KFA tenders diversify origins away from the U.S. or if current pricing and freight dynamics continue to favor U.S. corn through the remainder of the season.
Source: Market Data
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