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2025-09-12 17:46:30
Corn Purchases Hit the Road, Asian Demand Shows Weakness. (1) A major South Korean animal feed group (MFG) tendered for 70,000 tons of animal feed corn on Friday (Beijing time). European traders reported that all bids were rejected as too high, and no purchase agreement was reached. The aborted purchase signals a potential period of weakening demand for commodities in Asia, with market participants expressing caution even within seemingly reasonable price ranges. (2) The lowest bid in the tender was estimated at $234.40 per ton, including freight (C&F), plus an additional $1.25 per ton port discharge surcharge, covering approximately 65,000 tons. Although MFG had successfully purchased 130,000 tons of corn on Thursday (Beijing time), the failure of this tender may indicate a divergence in market expectations regarding future price trends, or a significant difference in cost considerations between sellers and buyers, leading to the failure of the transaction. (3) Market traders are still assessing the situation, and further price and quantity estimates may be forthcoming. This incident reflects that in the current global economic environment, even large-scale purchasing demand may be hindered by mismatched price expectations. It shows that market participants pay more attention to cost-effectiveness and risk control in trading decisions, which may have a certain impact on the short-term fluctuations of commodity prices in the future.
