Five South Korean flour producers bought a total of 30,000 metric tons of wheat from Eastern Australia, the first purchase from the region, as buyers seek cheaper alternatives to U.S. supplies.
Importers including CJ CheilJedang Corp. and Daehan Flour Mills Co. bought the cargo from GrainCorp Ltd. at $317.5 a ton on a cost and freight basis, said two industry executives who took part in a tender yesterday. The grain is for shipment between late July and early August, they said, asking not to be identified as the information is confidential.
The flour makers may increase purchases from Eastern Australia as the grain from the region was cheaper than the U.S. and Western Australian crops, the executives said. South Korea, which imports almost all its wheat requirements, meets almost half the needs from the U.S., with some 45 percent from Australia and the rest from Canada.