SINGAPORE -(Dow Jones)- The Korea Corn Processing Industry Association, or Kocopia, Friday in a tender purchased two cargoes totaling 110,000 metric tons food-grade optional origin corn from Bunge Ltd. (BG) and Glencore International PLC (GLNCY), both basis cost and freight, trading executives said.
It bought 55,000 tons each at $286.50/ton and $273.35/ton for arrival by Sept. 10 and Sept. 30 respectively. The price includes charge of unloading part of the cargo at a second port.
South Korean buyers had earlier bought corn for September arrival well above $300/ton, C&F and are now seizing the opportunity to snap up cargoes because of the slump in prices.
Last week, Kocopia had passed on a tender when the lowest offer was $299.45/ton, C&F, for Sept. 10 arrival. On April 19, Kocopia purchased 50,000 tons of South American food-grade corn from CJ International at $298.75/ton, C&F, for arrival by Aug. 25.
Most active July corn futures on the Chicago Board of Trade have declined to their lowest since March 2011 in anticipation of a record crop in the U.S., the world's largest exporter.
The Busan branch of the Korea Feed Association Thursday purchased 55,000 tons at $271.40/ton, C&F, for arrival by Nov. 30. This is the lowest price any South Korean buyer has paid so far in 2012 for corn bought in a tender. Prices are likely to fall further next week.
-By Sameer Mohindru, Dow Jones Newswires; +(65) 6415-4085; firstname.lastname@example.org
(END) Dow Jones Newswires
May 11, 2012 08:57 ET (12:57 GMT)
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