- Neutral corn impact: NOFI secures 68,000 tons of corn at $278.49/ton C&F with open origin, keeping Black Sea corn opportunities intact.
- Bearish Russian wheat: Wheat tender explicitly excludes Russian origin, curbing Black Sea wheat export potential from Russia.
- Tighter wheat pricing: Feed wheat bought at $292.99/ton C&F, about $14.50/ton above corn, reflecting standard feed grain economics.
- Selective buying: Corn volume cut to ~49% of original plan, hinting at cautious or opportunistic procurement by NOFI.
- Autumn arrival: Wheat scheduled to arrive by September 10, ahead of corn by September 25, shaping Korea’s autumn feed grain balance.
Market Update
South Korea’s Nonghyup Feed Inc. (NOFI) concluded two international feed grain tenders on May 19 to cover autumn requirements. The company purchased approximately 68,000 tons of feed corn from COFCO at $278.49 per ton C&F, plus a $1.50 per ton port unloading premium. This represents about 49% of the initially targeted 138,000-ton volume, indicating either limited acceptable offers or a deliberate decision to scale back purchases. The corn tender allows any origin and specifies arrival in South Korea by September 25.
On the same day, NOFI bought between 55,000 and 65,000 tons of feed wheat from COFCO at $292.99 per ton C&F, also with a $1.50 per ton unloading premium. The wheat shipment must arrive earlier, by September 10, and is subject to strict origin limits, excluding grain from Argentina, Russia, Pakistan, Denmark, and China. These restrictions narrow the supplier base and remove some of the most aggressive exporters from contention, particularly Russia.
Price & Volume Overview
| Commodity | Supplier | Volume (tons) | Price (C&F) | Unloading Premium | Max Arrival Date | Origin Terms |
|---|---|---|---|---|---|---|
| Feed Corn | COFCO | ≈68,000 | $278.49/ton | +$1.50/ton | 25 September | Any origin accepted |
| Feed Wheat | COFCO | 55,000–65,000 | $292.99/ton | +$1.50/ton | 10 September | Excludes Argentina, Russia, Pakistan, Denmark, China |
| Wheat–Corn Price Spread | — | — | ≈$14.50/ton | — | — | Reflects typical feed grain differential |
Analysis & Black Sea Impact
The exclusion of Russian wheat from NOFI’s tender removes one of the most competitive Black Sea exporters from this business, reducing Russia’s immediate access to the South Korean feed wheat market. While Ukrainian wheat remains eligible, it must compete on quality, freight, and logistics versus alternative origins that meet the tender’s terms.
The roughly $14.50 per ton premium of wheat over corn aligns with common feed grain substitution economics and should not dramatically alter rationing on its own, but it will be monitored by regional buyers. The decision to cover less than half the initially planned corn volume signals either buyer caution amid price volatility or confidence that further opportunities will emerge later in the season. With origin open for corn, the outcome is broadly neutral for Black Sea corn exporters, while the origin ban makes the tender outcome clearly bearish for Russian wheat specifically.
Source: Market Data
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