South Korea buys wheat from US and Australia

26.01.2017

A consortium of South Korean flour mills has purchased about 100,000 tonnes of milling wheat to be sourced from the United States and around 87,500 tonnes from Australia, European traders said.

The purchases were made in a tender which closed on Thursday by two groups, they said.

The US wheat was purchased in three consignments.

The first US consignment of 35,000 tonnes for shipment for June 1-30 comprised 8,400 tonnes of hard red winter wheat of 11.5 percent protein bought at $206.10 a tonne free on board (FOB) and 26,600 tonnes of US dark northern spring wheat of 14 percent protein bought at $254.00 a tonne FOB, they said.

A second 35,000 tonne US consignment also for June 1-30 shipment comprised 31,450 tonnes of soft white wheat of 10.5 percent protein content bought at $173.53 a tonne FOB and 3,550 tonnes of soft white wheat of 8.5 percent protein content bought at $204.44 a tonne FOB, they said.

A third 30,500 tonne US consignment for shipment between June 5 and July 5 comprised 14,200 tonnes of soft white wheat of 10.5 percent protein content bought at $175.28 a tonne FOB, 6,500 tonnes of hard red winter wheat of 11.5 percent protein bought at $206.16 a tonne FOB and 9,800 tonnes of dark northern spring wheat of 14 percent protein bought at $253.13 a tonne FOB, they said.

The Australian wheat was purchased in two consignments, they said. The first consignment of 54,500 tonnes for shipment for June 1-30 comprised 42,500 tonnes of standard white wheat of a minimum 10.3 to 11.0 percent protein content bought at $214.75 a tonne FOB, 6,000 tonnes of hard wheat of a minimum 11.5 percent protein for $230.00 a tonne FOB and 6,000 tonnes of premium white of a minimum 10.5 percent protein bought for $210.00 a tonne FOB, traders said.

The second consignment for shipment for June 15 to July 15 comprised Australian standard white of 10.3-11.0 percent protein bought at $215.50 a tonne FOB and hard wheat of a minimum 11.5 percent protein bought at $230.00 a tonne FOB, they said.

Some 70,000 tonnes of US-origin wheat was bought for the Incheon and Busan-based consortium of flour mills and 30,000 tonnes for the Pyung Taek-based mill consortium, they said.

Some 54,500 tonnes of Australian-origin wheat was purchased for the Incheon and Busan consortium and 33,000 tonnes for the Pyung Taek group, traders said.

US wheat futures fell nearly 2 percent on Thursday on profit-taking and expectations of slowing export demand in the wake a rally this week to multi-month highs.


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