South Korea Secures 60,000 Tons of Feed Corn at Competitive Price
- Competitive Benchmark: South Korea secured 60,000 tons of feed corn at $275.79/ton C&F, setting a reference price for Asian feed corn.
- Partial Tender Fill: Only 43% of the planned 140,000-ton tender was contracted, leaving 80,000 tons potentially still to source.
- Neutral for Black Sea: Origin from South America/South Africa limits immediate impact on Black Sea corn flows but provides a pricing signal.
- Near-Term Supply: Shipment is expected to arrive by August 20, 2025, securing part of South Korea’s feed demand for the new season.
Market Update
Cargill Agri Purina, a major South Korean feed buyer, purchased around 60,000 tons of feed corn via an international tender held on April 28. The cargo will be supplied by trader ETG, with the origin specified as either South America or South Africa, both competitive export hubs for feed corn into Asia.
The deal was concluded at a price of $275.79 per ton on a C&F basis, with an additional $1.50 per ton charged for extra port unloading services. Delivery of the shipment is scheduled no later than August 20, 2025, helping to cover South Korea’s feed grain needs into late summer.
Despite an initial tender target of 140,000 tons, only 60,000 tons were ultimately purchased. This means just 43% of the planned volume was covered in this round, indicating cautious procurement or constraints on acceptable pricing and/or origin availability.
| Item | Volume / Price | Notes |
|---|---|---|
| Tender target volume | 140,000 tons | Planned purchase |
| Actual contracted volume | 60,000 tons | 43% of tender target |
| Remaining tender volume | 80,000 tons | Potential future demand |
| Corn purchase price | $275.79/ton C&F | Feed corn, South America/South Africa origin |
| Extra unloading cost | $1.50/ton | Additional port handling fees |
| Latest delivery date | August 20, 2025 | Into South Korea |
Impact on Black Sea Corn Market
The outcome of this tender is broadly neutral for the Black Sea corn market in the near term, as South Korea opted for South American and South African origins. Nonetheless, the achieved price of $275.79/ton C&F acts as a key benchmark for Asian feed corn and may influence offer levels from Black Sea exporters targeting the region.
The partial fill of just 60,000 tons against a 140,000-ton tender suggests either tight supply at the desired price points or deliberate buyer discipline on pricing and quality. If South American premiums rise or availability tightens, South Korea could re-enter the market to cover the remaining 80,000 tons, potentially opening a window for competitive Black Sea corn, particularly if freight and basis levels remain attractive.
Source: Market Data
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