S Korean feed buyers shun US PNW corn for June arrival on quality concerns

Singapore — South Korea's two largest feed buyers, Major Feedmill Group (MFG) and Nonghyup Feed Inc (NOFI), stopped accepting offers of corn from the US Pacific Northwest for June arrivals due to concerns about poor corn quality, a Korean-based trading source said Tuesday.

The concerns focus on higher levels of broken corn foreign material (BCFM), sources said.

Korean feed typically specifies for 4-5% BCFM.

MFG had a public tender closing Tuesday at 0800 GMT, seeking two cargoes of between 55,000 mt to 70,000 mt, one for June 11 and another June 18 delivery, multiple sources said.

The buyer has stated that offers that are above $215/mt CFR and from US PNW are not acceptable.

MFG bought the first cargo for delivery June 11 from Panocean at $211.79/mt CFR basis excluding $1/mt additional port charge, sources said.

On Monday, MFG privately negotiated with Cargill to buy 66,000 mt of corn at $211.88/mt CFR Pyongtaek with an additional port surcharge of $1.25/mt at Kunsan. The buyer bought the cargo with worldwide origins excluding US PNW, sources reported.

Japan is a buyer of US PNW corn and sources said the first 2020 cargo from that origin is expected to arrive in the next few days.

The South Korean buyers are keenly watching the quality specifications to decide on future buying decisions, a feed maker said.