South Korea’s MFG Procures Feed Wheat in Private Deal

HAMBURG: Major Feedmill Group (MFG) of South Korea has secured an estimated 50,000 to 65,000 tons of animal feed wheat through a private transaction on Tuesday. According to European traders, the purchase, which allows for worldwide sourcing, was made without an open international bidding process.

The agreed-upon price for one consignment is approximately $254.40 per ton, including cost and freight (c&f), in addition to a $1.50 per ton fee to cover extra port unloading expenses. Sources indicate that Cargill, the trading house, was the seller.

The corn is slated to arrive in South Korea around September 15. For wheat originating from the Black Sea region, the shipment window is set between July 11 and August 11.

Market Trends:
  • Wheat is down 10-11 cents.
  • Corn is down 6-7 cents.
  • Soy is down 5-6 cents.

Notably, Russia, China, Pakistan, Argentina, and Denmark are excluded as countries of origin. The final volume within the 50,000 to 65,000-ton range must be determined by May 31.

It is important to note that these details are based on assessments from traders, and further revisions to price and volume estimations may occur. Separately, MFG also engaged in an international tender to acquire animal feed corn on the same day, Tuesday.