- South Korea’s Major Feedmill Group (MFG) secured 135,000 tons of feed corn for July delivery, reaching 64% of its 210,000-ton tender target.
- Average purchase price was about $250.89/ton C&F plus $1.50/ton port surcharge, with volumes sourced from the US, South America, and South Africa.
- Contracts were awarded to Mitsui and Cargill for early July arrival, underscoring strong competition from non–Black Sea origins into Asian feed markets.
- Outcome is neutral for Black Sea corn, as Asian buyers continue to diversify away from the region amid competitive pricing from the Americas.
South Korea Feed Corn Tender Overview
South Korea’s Major Feedmill Group (MFG) purchased 135,000 tons of feed corn in an international tender held on February 27, 2024, fulfilling roughly 64% of its initial 210,000-ton procurement target. The corn will be supplied from a combination of US, South American, and South African origins, reflecting continued diversification in Asian feed grain sourcing.
Contract Details and Pricing
| Buyer | Seller | Volume (tons) | Price (C&F, $/ton) | Port Surcharge ($/ton) | Total Delivered Cost ($/ton) | Latest Arrival Date |
|---|---|---|---|---|---|---|
| MFG (South Korea) | Mitsui | 67,000 | 251.23 | 1.50 | 252.73 | July 1, 2024 |
| MFG (South Korea) | Cargill | 68,000 | 250.55 | 1.50 | 252.05 | July 10, 2024 |
| Total / Average | 135,000 | 250.89 | 1.50 | 252.47 | Early–Mid July 2024 | |
The first lot of 67,000 tons was awarded to Mitsui at $251.23 per ton C&F, plus a $1.50 per ton port unloading surcharge, for arrival no later than July 1, 2024. The second lot of 68,000 tons was sold by Cargill at $250.55 per ton C&F, with the same $1.50 per ton port fee, for shipment arriving by July 10, 2024.
Market Impact and Regional Implications
The achieved prices below $252 per ton C&F into Asia highlight strong competitive pressure from North and South American suppliers during the spring buying window. For Black Sea corn exporters, this tender is broadly neutral: demand has flowed to rival origins, and Asian feed buyers appear willing to continue diversifying away from the Black Sea unless freight economics shift or South American availability tightens ahead of the July delivery period.
Source: Market Data
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