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South Korea's MFG buys some 136,000 tonnes corn - trade

South Korea's Major Feedmill Group (MFG) purchased an estimated 136,000 tonnes of animal feed corn in a deal on Friday, European traders said.

Adds detail, shipment periods, from paragraph 3

HAMBURG, June 18 (Reuters) - South Korea's Major Feedmill Group (MFG) purchased an estimated 136,000 tonnes of animal feed corn in a deal on Friday, European traders said.

The corn was optional origin but expected to be sourced from South America.

It was purchased in two 68,000 tonne consignments both in a combination of outright price and premiums over Chicago corn futures.

The outright price was estimated at $295.21 a tonne c&f plus a surcharge of $1.50 a tonne for additional port unloading for both consignments. The premium element for both consignments was estimated at 198.50 U.S. cents c&f over the Chicago September corn contract CU1 plus a surcharge of $1.50 a tonne for additional port unloading.

The seller of all the grain was believed to be trading house Cofco.

The first consignment was sought for arrival in South Korea around Oct. 5. If sourced from South America, shipment is between July 26 and Aug. 26.

The second consignment was sought for arrival in South Korea around Oct. 10. If sourced from South America, shipment is between Aug. 1 and Aug. 31.

The seller has the right to supply only 52,000 tonnes for both consignments if the corn is sourced from South Africa.

South Korean importers bought a total 261,000 tonnes of corn on Friday in bargain-buying after sharp fall in Chicago corn futures on Thursday. GRA/TEND

Korean feed grain importers have recently been concentrating on cheaper feed wheat, traders said.

(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.

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