South Korean corn buyers return to secure Dec-Jan arrivals amid declining prices

Several South Korean corn buyers returned on Oct. 16 with a flurry of both tender and private deals for December 2024-January 2025 arrivals after more than a month of silence, sources reported.

South Korean buying groups MFG, NOFI, and KFA Incheon all concluded deals on Oct. 16 following several days of price decline in the spot market, with the deal prices ranged at $236.49-$237.74/mt CFR for world-wide origin and $243.33/mt CFR for South American origin.

Spot CFR North Asia corn prices declined following a five-month high of $252/mt on Oct. 8 due to the US harvest season, and a higher-than-expected crop yield reflected in the USDA's October World Agricultural Supply and Demand Estimates report.

The previous deal was concluded on Sept. 5, after trader CHS sold a cargo of US PNW-origin corn to buyer FLC at $231.49/mt CFR for November delivery.

Corn spot prices rose rapidly in September and early October following the FLC deal, buoyed on bullish sentiment surrounding dry weather conditions in South America and low river water levels in the US.

However, a combination of the price rally, several key holidays, and expectations of price decline following the return of US-origin corn supply drove South Korean buyers to the sidelines in September, with traders stating that buyers might reduce their December arrival cargo demand.

Similarly, the Asian market saw Vietnamese and Chinese buyers remain quiet in September due to large volumes of July-booked cargoes arriving into Vietnam in October, and Chinese buyers were advised by the government to slow imports due to their domestic corn harvest, according to several buyer sources.

Platts, part of S&P Global Commodity Insights, assessed daily feed quality corn CFR Northeast Asia down $2/mt at $240/mt CFR on Oct. 16, but up $1.75/mt since Sept. 5.