South Korea Starts Grain Venture in Chicago to Secure Supply
South Korea, the world’s third- biggest corn buyer, has started a grain-trading venture in the U.S. in a bid to secure a stable supply amid soaring food prices.
State-run Korea Agro-Fisheries Trade Corp. set up the venture, aT Grain Co., in Chicago, with three other South Korean companies, the Seoul-based company said in an e-mailed statement today. Korea Agro-Fisheries owns 55 percent of aT Grain, while Samsung C&T Corp. (000830), Hanjin Transportation Co. and STX Corp. each hold 15 percent.
South Korea, which relies on imports for almost all its corn and wheat needs, is attempting to boost supplies as surging global food costs fuel inflation. Prices have climbed as bad weather ruined crops from Canada to Australia and Russia banned grain exports after its worst drought in a half-century.
“It is a national task to secure a stable supply of grains at a time when grain prices keep on rising because of population growth and unusual changes in weather,” the statement said.
The venture plans to import 50,000 metric tons of corn and 50,000 tons of soybeans this year and further boost shipments to Korea to about 2.15 million tons by 2015, the statement said.
Trader Samsung C&T will handle marketing for the venture, while Hanjin will deal with overland transport of grain and STX will be responsible for maritime shipping, it said.
Corn futures prices have almost doubled in Chicago in the past year, while wheat jumped 56 percent and soybeans climbed 36 percent.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net KS <Equity> KS <Equity> KS <Equity>
Rate this Page