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Korea Grain-Most buyers except NACF await US cues

Korea Grain-Most buyers except NACF await US cues


     SEOUL, Sept 17 (Reuters) - Most South Korean grain importers said on Monday they were still in a wait-and-see mode, assessing impacts from the terror attacks on the United States last week, before making a decision to buy.

     But one feed makers group has issued grains tenders.

     Traders said most importers felt it was too early to judge price directions since the Chicago Board of Trade (CBOT) resumed trading only last Thursday after a two-day shutdown and because of uncertainty tied to the United States' pledge to wage war against the attackers.

     "Grain prices might fall sharply, if the United States begins war. So most importers have adopted a wait-and-see attitude," a Seoul trader said.

     Another trader said: "For the delivery of those U.S. grains under contracts, no change has been made since the attack."

     Cheil Jedang Corp <01040.KS> and Dongah Flour Mills Co Ltd could reinvite tenders this week to buy 22,600 tonnes of U.S. No.1 wheat for shipment between October 25-November 25 to the port of Pusan, traders said.

     "We plan to reinvite tenders this week but first we will see the grain price movements (at the CBOT) on Tuesday before confirming the reinvitation," an official with one of the issuers, who declined to be identified, told Reuters.

     The two flour makers passed last Wednesday on the tenders due to a lack of offers with the CBOT closed. Regarding the passed tenders, Dongah sought 8,800 tonnes at fixed prices, while Cheil sought 13,800 tonnes at basis prices over December futures on major U.S. exchanges, including the CBOT.

     CORN AND OTHER TENDERS SCHEDULED

     Despite uncertain price direction on the CBOT, the National Agricultural Cooperative Federation (NACF) has invited tenders to buy 50,000 tonnes of Chinese corn, 22,000 tonnes of Indian soymeal and 2,200 tonnes of Chinese cottonseed meal for arrival in November and December. The NACF tenders will close at 0500 GMT on Tuesday.

     Korea also has two scheduled tenders this week to buy rice under a World Trade Organisation (WTO) agreement while results are expected for other rice tenders closed last week.

     As issued last month, the state-run Public Procurement Service (PPS) will close a tender to buy 20,000 tonnes of short grain brown rice by 0130 GMT on Tuesday. Shipment for the tender is to be completed by December 7 to a Korean port.

     The Agricultural and Fishery Marketing Corporation (AFMC) also will close a tender to buy 22,520 tonnes of short grain brown rice by 0200 GMT on Thursday as issued early this month. Its shipment is to be completed by December 15 to a Korean port.

     The 2001 import quota for South Korea under the WTO agreement totals 142,520 tonnes of brown rice -- equivalent to 128,000 tonnes of white rice after milling.

     Freight rates for panamax-sized vessels for spot shipment from the Pacific Northwest rose sharply to $11.40 per tonne from $10.50 a week earlier in line with rising oil prices after the terror attack, a trader at South Korea's Pan Ocean Shipping Co said.

     Spot freight rates from the U.S. Gulf were also up at $18.20-$18.30 per tonne from $17.80 a week earlier, he said.

    

     Reuters Terminal users can see Asian cash grain, oilseed and meal prices and recent deals by double clicking on the codes in brackets:

    Corn               - 
    Wheat              - 
    Oilseeds           - 
    Meal               - 

     South Korea deals -

    Taiwan deals       - 

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