The U.S. ag attache in the Republic of Korea has raised its 2013-14 corn import forecast by 500,000 MT to 9.5 MMT, of which 3 MMT are expected from the U.S., which is a 1 MMT increase from the attache's previous forecast. The attache lowered its wheat consumption forecast due to corn prices becoming more competitive.
"Feed millers expect to make small amounts of feed wheat contracts possible under the current price structure between feed corn and wheat," says the attache. "Latest contracts showed that feed wheat prices were US$50-60 per ton higher than feed corn."
The attache notes for 2012-13, the estimated corn inclusion rate was 34.3% of total ingredients for compound feed production, which is 2.7% higher than the previous year. This ratio is projected to increase to 41% in 2013-14, says the attache, "as feed corn price becomes more competitive and is the preference of local animal growers."