- South Korea’s FLC booked 132,000 tonnes of feed corn via a May 7 tender at around $268/tonne C&F for September arrival.
- Sucden and Mitsui will supply two shipments (65,000 t and 67,000 t), highlighting competitive global pricing with only marginal price differences.
- Neutral to bearish for Black Sea corn as “any origin” terms and tight C&F levels increase competition among exporters into Asian markets.
South Korea’s FLC Secures Feed Corn in May Tender
South Korean animal feed producer FLC has secured approximately 132,000 tonnes of feed corn of any origin through an international tender held on May 7. The purchase was split into two separate cargoes for September delivery into South Korea, underscoring steady regional demand for feed grains.
The first cargo of 65,000 tonnes was awarded to trader Sucden at a price of $268.30 per tonne C&F. The second shipment, for about 67,000 tonnes, was booked with trading house Mitsui at $267.89 per tonne C&F, plus a $1.50 per tonne surcharge to cover additional port unloading services. Both consignments are scheduled to arrive during September, aligning with new crop availability from several key exporting regions.
| Buyer | Supplier | Volume (tonnes) | Base Price (C&F, $/t) | Surcharge ($/t) | Effective Price (C&F, $/t) | Arrival |
|---|---|---|---|---|---|---|
| FLC (South Korea) | Sucden | 65,000 | $268.30 | $0.00 | $268.30 | September |
| FLC (South Korea) | Mitsui | 67,000 | $267.89 | $1.50 | $269.39 | September |
| Total / Implied Average (base only) | 132,000 | ≈$268.10 | September | |||
Market Implications
The “any origin” terms and the achieved C&F levels near $268 per tonne highlight a competitive global feed corn supply environment. FLC’s selection of established international traders Sucden and Mitsui, without committing to a specific origin at the tender stage, indicates that price competitiveness is currently taking precedence over origin differentiation.
For Black Sea exporters, these prices are neutral to slightly bearish. The September shipment window coincides with new crop availability from major producers, intensifying competition into Asia. To secure market share in South Korea and the broader region, Black Sea suppliers will likely need to match or beat these C&F benchmarks once freight and logistics are factored in.
Source: Market Data
Leave a Reply