By: Byong Ryol Min, U.S. Grains Council Director in Korea

Korea is a highly sophisticated market with the ability to diversify sourcing and reformulate rations in response to pricing. Following the 2012 drought when U.S. coarse grain prices were uncompetitive, the Korean market therefore responded swiftly with a significant drop in U.S. market share.

Throughout 2013, the U.S. Grains Council provided timely market and technical information and customized trade servicing to Korean coarse grain import buyers and end-users to assure them of the U.S. long-term capacity, reliability, and commitment to the Korean market. These programs coupled with a good crop and a more normal pricing environment will place the United States in a position to rebound in 2014.

On Nov. 22, the Council, in cooperation with the Korean Feed Association, conducted a feed grain trade seminar/webinar on market and technical topics including ocean freight market perspectives, world and U.S. coarse grains supply and demand outlooks, and international financial market perspectives.

USGC Manager of Global Trade Kevin Roepke provided the corn and co-products supply and demand outlook where he emphasized that the United States is a reliable, long-term supplier of quality feed grains to Korea. Roepke’s presentation also underscored that 2013 was a record corn crop despite early weather concerns.

From this information, Korean buyers will be able to develop efficient purchasing strategies and ultimately regard the U.S. advantage as a premium when making grain buying decisions. Since the end of October, Korea has purchased more than 1 million tons (39.4 million bushels) of U.S. corn mostly for 2014 delivery.