South Korea cancels corn tender

South Korean company Feed Leaders’ Committee (FLC) has cancelled a tender for the purchase of 52-69 thousand tons of feed corn due to high prices. This was reported Reuters agency.

Shipping dates under the tender conditions:

• From August 17 to September 15, if the shipment takes place from ports on the US Northwest Coast
• From August 28 to 26 – from ports on the US Gulf Coast
• From July 23 to August 21 – from South America
• From August 7 to September 5 – from South Africa.

Sellers could offer a delivery date to South Korea 5 days earlier or later than October 5. They could also freely choose the tonnage.

The lowest price in the tender was offered by Mitsui – $243.95 per ton on a CFR basis (+$1.25 for unloading in the second port). CHS was willing to deliver corn at $243.04 a ton CFR (plus $1.50 for a second port unloading), but with a later delivery date than the tender terms stipulated, arriving in South Korea by November 20.

Traders said FLC was expecting a price of about $235 CFR for delivery to South Korea in early October.

Traders said Asian buyers were encouraged by a drop in CBOT corn futures to a nearly eight-month low on Tuesday, as improved crop conditions and a better weather outlook fueled expectations of a bumper U.S. harvest.

Tags: tender, corn, South Korea