- Firm Asian demand: South Korea’s MFG booked 135,000 tonnes of feed corn for Q3–Q4, signaling resilient feed use in the region.
- Stable price levels: Tender prices around $272 per tonne C&F highlight current equilibrium in global corn trade despite supply competition.
- Competitive origins: Flexible sourcing from the US, South America, and South Africa keeps pressure on Black Sea exporters to offer sharper pricing.
- Neutral Black Sea impact: The deal is neutral for immediate Black Sea corn prospects but supports the broader market via sustained Asian demand.
South Korea’s MFG Corn Tender Overview
South Korea’s Major Feedmill Group (MFG) secured approximately 135,000 tonnes of feed corn via an international tender held on May 22. The volume was split into two consignments, sourced from flexible origins including the United States, South America, and South Africa, with delivery scheduled for late September and early October 2024.
| Shipment | Volume (tonnes) | Supplier | Price (C&F, $/t) | Surcharge | Delivery Deadline | Possible Origins |
|---|---|---|---|---|---|---|
| 1st Cargo | 68,000 | Pan Ocean | $272.39 | $1.50/t for alternative port | By 30 Sep 2024 | US / South America / South Africa |
| 2nd Cargo | 67,000 | CJ International | $272.00 | None reported | By 5 Oct 2024 | US / South America / South Africa |
| Total | 135,000 | MFG Purchases | ≈$272 average | As above | Q3–Q4 2024 window | Multi-origin |
Market Impact and Analysis
The pricing near $272 per tonne C&F reflects a competitive but balanced international corn market, with MFG leveraging flexible origin options to secure supply. Strong Asian feed demand continues to underpin global corn flows and maintains a firm floor under prices.
For Black Sea exporters, the tender is neutral in the near term: South Korea’s willingness to buy from the US, South America, and South Africa confirms that price and freight competitiveness remain crucial for Ukrainian and Russian sellers targeting Q3–Q4 slots. Nonetheless, sustained Asian demand is supportive for the broader corn market structure going into the second half of 2024.
Source: Market Data
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