Story
South Korean Mills Secure 100,000 Tonnes of US and Canadian Wheat
Summary
A group of South Korean flour mills has reportedly purchased approximately 100,000 metric tons of milling wheat from the United States and Canada for delivery in early 2027, according to trade reports.
A consortium of South Korean flour mills has reportedly purchased approximately 100,000 metric tons of milling wheat in an international tender. The transaction, split evenly between suppliers in the United States and Canada, secures grain for shipment in early 2027.
Such large-volume purchases by major Asian importers like South Korea are closely monitored by the market as key indicators of international demand and current price levels for North American grain.
Purchase Breakdown
The tender was reportedly divided into two 50,000-tonne consignments, with all wheat acquired on a free on board (fob) basis, meaning the price does not include shipping and insurance costs. According to a Reuters report, the trading house CJ International is believed to be the seller for the U.S. portion.
The U.S. sale included several classes of wheat for delivery between January 1 and January 31, 2027:
Ad- 23,000 tonnes of soft white wheat (9.5%-11% protein) at an estimated $273.78 per tonne.
- 14,385 tonnes of hard red winter wheat (min. 11.5% protein) at $335.98 per tonne.
- 12,615 tonnes of northern spring/dark northern wheat (min. 14% protein) at $335.52 per tonne.
Canadian Shipment Details
The 50,000 tonnes of Canadian wheat was reportedly purchased for a price in the low $330s per tonne on a fob basis. This portion of the order is scheduled for shipment between January 15 and February 15, 2027.
The specific pricing across different wheat classes provides a valuable benchmark for grain traders. The forward-dated delivery schedule indicates that the mills are locking in supplies and prices well in advance to manage their procurement strategy.
Read next
More on Commodities
US-China Summit to Tackle Key Commodity Disputes in Agriculture, Energy
The upcoming meeting between President Trump and President Xi is expected to focus on resolving trade frictions involving U.S. agricultural exports, Chinese energy tariffs, and the supply of critical rare earth materials.
Citi Warns Hawkish Fed Policy Threatens Non-AI Economic Growth
A recent report from Citi Research warns that the Federal Reserve's hawkish monetary policy could suppress the U.S. housing market and make the broader economy dangerously dependent on AI investment.
Petrobras Board Approves Participation in New Government Diesel Subsidy Program
Brazil's state-run oil company, Petrobras, will join a new government program providing a 1.00 real per liter subsidy on diesel, a move aimed at stabilizing fuel prices ahead of the upcoming presidential election.
Oil Prices Retreat as China Urges Iran to Curb Houthi Attacks on Saudi Facilities
Crude oil futures fell on Friday after reports that China, at Saudi Arabia's request, pressured Iran to rein in Houthi attacks, easing some geopolitical supply fears. However, ongoing pipeline disruptions and refining constraints continue to support the market.