Korean Farmers' Association Feed Group buys 165000 tons of corn through bidding

The Korean Farmers' Association Feed Group, South Korea's largest feed buyer, bought 165000 tons of corn at this week's auction, slightly less than originally planned, according to South Korean industry insiders.

The corn is shipped in three shipments of 55000 tons each. The first shipment of corn is scheduled to arrive on February 15, 2010, and CNF prices add $2.14 a bushel to the CBOT March corn price.

The arrival date of the second ship is set on April 3, 2010, and the CNF price adds $2.03 per bushel to the monthly corn price of CBOT3.

The third shipment of corn is scheduled to arrive on April 5, 2010, and CNF prices add $1.98 a bushel to the CBOT March corn price.

The corn will be transported to Incheon Port, Gunshan Port, Mupu Port, Busan Port and Ulsan Port. When the goods are transported to the second and third ports, the buyer must pay an additional cost of $1.50 per ton. The extra price for arrival at Mupu Port is US $2.50 per ton.

The Korean Farmers' Association Feed Group buys American, South American or Chinese corn from Cargill.

South Korea's mixed feed production from January to August 2009 was 10.7 million tons, stable from the same period last year, according to analyst F. O. Licht.