Wedoany.com Report-Aug. 6, South Korea’s Major Feedmill Group (MFG) finalized a private deal with Pan Ocean to purchase 65,000 tonnes of feed wheat from the United States. The transaction, priced at $261.75 per tonne C&F with an additional $1.25 per tonne surcharge for unloading at a second port, ensures delivery to South Korea by November 7.

The purchase reflects a shift toward cost-competitive sourcing, as US red wheat prices have fallen compared to the previous year. An unnamed European trader stated: “Importers are looking for the lowest cost and largest volume suppliers of wheat. It is not surprisingly that US wheat sales to Asia are growing.” The trader noted that higher-than-expected prices for new crop wheat from other regions have limited their competitiveness in Asian markets.

This deal underscores the growing demand for affordable feed wheat in South Korea, driven by the need to secure reliable supplies for the feed industry. By sourcing from the US, MFG benefits from lower costs and dependable delivery, supporting the country’s agricultural sector. The transaction also highlights the increasing role of US wheat in meeting Asia’s feed requirements, as competitive pricing enhances its market appeal.

The agreement with Pan Ocean, a key player in global shipping and logistics, ensures efficient transport of the wheat to South Korea. This purchase aligns with MFG’s strategy to optimize costs while maintaining a steady supply chain for feed production, contributing to the stability of the domestic livestock industry.