Singapore—Feedmillers in South Korea have emerged to buy corn for the first time in 2021 as cheaper Argentinian corn became available amid soaring US prices, market sources said Feb. 4.
South Korea's Major Feed Group was looking to buy two 55,000-70,000 mt cargoes, one each for delivery over May 20 and June 13.Platts corn arbitrage price matrix
This tender comes after the buyer was on a two-month hiatus and the last time the group bought a US PNW origin cargo was on Dec. 3 at around $240/mt CFR for May delivery.
Another feedmiller in South Korea, Nonghyup Feed Inc, was also considering tendering for cargoes, South Korea-based trading sources said.
The feedmillers in South Korea have been reluctant to purchase corn due to the rally in prices and since last purchase on Dec. 3, CFR NE Asian corn has soared $48/mt or 20%.
Markets were supported by tightening global corn supply, with the strong demand from China resulting in the March CBOT corn futures jumping almost 30% in the same period.
Singapore-based trading sources attributed the interest from South Korea to the availability of cheaper Argentinian corn in the markets recently.
US corn has been the most competitively priced in North Asia since October-November based on the Platts Corn Arbitrage Price Matrix. The arrival of Argentina corn export season starts in March-April timing, putting it in the competition against the other origins.
