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South Korea's MFG purchases about 137,000 t corn, traders claim

Major Feedmill Group, a South Korean company, purchased approximately 137,000 metric tonnes of animal feed corn at an international auction on Friday. A 69,000-ton consignment that was to come from South America or South Africa alone, plus a $1.50 surcharge per ton for port unloading costs, were purchased at an estimated cost and freight of $260.25.

Cargill, a trading company, is believed to have sold the corn from South America/South Africa. It should arrive in South Korea by July 10.

A second consignment, 68,000 tons of optional origins, was purchased at a cost of $253.49 per ton plus $1.50 for port unloading.

The optional origin corn is expected to arrive in South Korea on or around June 25, and its seller is believed to be the trading house Olam. The MFG was looking for up to 140,000 tonnes of corn with separate offers from South America/South Africa origin or optional origin from the United States.

The reports reflect the assessments of traders. Further estimates on prices and volume are possible in the future. South Korean importers have been buying heavily in the past days, after U.S. Corn futures dropped about 2% last week. (Reporting and editing by Michael Hogan)

(source: Reuters)