Corn commentary: New buying from South Korea lifts futures further
Futures rebounded from Thursday's profit-taking on Friday following reports of new deals done to South Korean feed companies, which were likely sold from the US as other origins remaining largely uncompetitive for near-month shipment.
By 1300 Eastern time, the December contract was changing hands at $4.234/bu, up by $0.01/bu on the day with the March contract changing hands at $4.29/bu, up by $0.016/bu.
In Asia, South Korea's Nonghyup Feed Inc (NOFI) purchased 200,000 mt of feed corn in a tender closed Friday.
The company bought 66,000 mt from Pan Ocean at $243.20/mt, 68,000 mt from Bunge at $241.99/mt, and 66,000 mt from ADM at $241.99/mt CFR South Korea.
The cargoes are to be delivered to South Korea between April 30-May 25.
The Feed Leaders Committee (FLC) also closed a tender buying 68,000 mt from Bunge at $241.99/mt for the cargo sourced worldwide and delivered to South Korea by May 20.
In the origins markets, Ukrainian corn offers for December loading stayed stable on Friday, with the lowest heard for December loading at $235/mt FOB HIPP versus $233/mt FOB HIPP.
Meanwhile, the lowest offer for January was heard at $235.50/mt FOB HIPP, while the bid was at $234/mt HIPP.
New crop offers for October-December 2021 loading remained at a 99-100-cent premium over the December 2021 contract versus the highest bid reported at an 85-cent premium.
In Romania, offers for January loading were at around €201/mt FOB CVB versus buyers at around €197- €198/mt FOB CVB.
Russian weekly corn exports increased 4% to 72,000 mt, pushing total loadings since the start of the 2020/21 marketing year to 671,000 mt, some 32% down year-on-year.
Moving to the Americas, offers in the FOB Gulf for March slipped by 10 c/bu with first-half of the month heard offered at 110 c/bu over March futures and the last half of the month at 100 c/bu.
Further south, offers in Brazil for the old crop in January were heard at 180 c/bu over March futures, 18 c/bu above the nearest bid which was steady at 162 c/bu.
And for the new crop from July onward, offers ticked 10 c/bu higher to 95 c/bu over July futures with bids pegged 10 c/bu below at 85 c/bu.
In Argentina, expectations of fresh rainfall weighed on the domestic market with farmers reported to be halting most new sales for both the old and new crop.
For March shipment, offers were seen at 118 c/bu over May futures with bids coming in at 108 c/bu, up 3 c/bu and down 2 c/bu respectively from yesterday.