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NoFI, South Korea's feed wheat buyer, purchases 65,000 t from United States

The leading South Korean animal feed manufacturer Nonghyup Feed Inc. (NOFI) bought about 65,000 metric tonnes of animal feed wheat, which was expected to come from the United States. This purchase took place in an international auction on Thursday.

The wheat was purchased in a single consignment. Around 40,000 tons were bought at an estimated price of $262.94 per ton, cost and freight included. The rest of the wheat was at a premium rate of 184 U.S.cents per bushel over the Chicago December Wheat contract.

A $1.50 surcharge per ton is added for port unloading.

Columbia Grain International is believed to be the seller. Wheat was expected to arrive in South Korea by November 15.

The tender requested that the wheat be shipped between October 5-24. This is a slight change from what was originally requested.

The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later.

The Chicago Wheat Futures have hit a five-year low this week, as global supplies of recent wheat harvests from the United States and Black Sea Region have flooded the markets.

A German trader commented: "U.S. Wheat is currently the cheapest wheat in the world, so it's not surprising that the U.S. is making sales at tenders such as this."

The Feed Leaders Committee of South Korea (FLC), on Wednesday, purchased approximately 60,000 tons from feed wheat suppliers around the world. (Reporting and editing by Michael Hogan)

(source: Reuters)