US Markets

South Korea's MFG buys about 65,000 tonnes feed wheat in tender - trade

South Korea's Major Feedmill Group (MFG) has purchased about 65,000 tonnes of animal feed wheat which can be sourced from optional origins in a tender which closed on Tuesday, European traders said.

Adds second consignment not bought, shipment periods from possible global origins

HAMBURG, June 15 (Reuters) - South Korea's Major Feedmill Group (MFG) has purchased about 65,000 tonnes of animal feed wheat which can be sourced from optional origins in a tender which closed on Tuesday, European traders said.

The tender had sought up to 140,000 tonnes in two consignments of up to 70,000 tonnes. But traders said that only one consignment was purchased.

The wheat was bought at an estimated $304.25 a tonne c&f including a surcharge for additional port unloading. The seller was believed to be trading house Olam.

The consignment bought was for arrival around Oct. 30. Shipment was sought between Sept. 26 and Oct. 15 if sourced from the U.S. Pacific Northwest coast, Australia or Canadian west coast; between Sept. 6 and Sept. 25 if from the U.S. Gulf or Black Sea region, or between Sept. 1 and Sept. 20 if from South America.

High corn prices continue to encourage Asian importers seek wheat as an alternative feed source, traders said.

The MFG on June 11 purchased about 65,000 tonnes of feed wheat at $313.00 a tonne c&f plus a $2.50 a tonne surcharge for additional port unloading.

(Reporting by Michael Hogan, editing by David Evans)

((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More