South Korea's Major Feedmill Said to Buy 110,000 Tons of Corn in Tender

South Korea’s Major Feedmill Group bought 110,000 metric tons of corn in a tender for arrival in January, according to two industry executives who took part in the bidding on Sept. 3.

The group paid $272.88 per metric ton on a cost-and-freight basis, the executives said today, asking not to be identified because tender results are confidential. The price compares with $213.67 a ton on the same basis paid by Korea Feed Association in June for a 55,000-ton cargo for delivery by Nov. 5.

Corn futures climbed 24 percent since July 1 as buyers turned to the grain as a substitute after wheat prices surged. Wheat soared 54 percent in the period after Russia banned grain exports because of drought, while soybeans jumped 15 percent.

Russia will extend its export ban at least until next year’s crop is harvested to ensure domestic supplies, Prime Minister Vladimir Putin said Sept. 2. The ban was originally from Aug. 15 to Dec. 31.

Corn for December delivery gained 3.8 percent to $4.6450 a bushel on the Chicago Board of Trade on Sept. 3, rising 6.5 percent in the week.

To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.

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