Main points
- South Korea has refused to purchase feed wheat due to high prices caused by a jump in US quotes.
- The tender had strict geographical restrictions, excluding grain from Russia, Argentina, China, Pakistan, and Denmark, as well as the Black Sea ports of Ukraine and Russia.
South Korea has abandoned grain / Photo Pixabay
South Korea was unable to purchase feed wheat at an international tender due to a sharp increase in grain prices. The reason was a jump in stock prices in the United States after new crop forecasts.
Tender for wheat purchase ends without agreement
South Korea's Feed Leaders Committee (FLC) is unlikely to have made a purchase in an international tender for up to 65,000 tonnes of feed wheat, Reuters reported. According to European traders, the bidding took place on May 13, but the prices offered were too high for buyers.
The increase in grain prices followed an overnight jump in American wheat prices on the Chicago Board of Trade.
The market explains that the reaction was caused by forecasts of a possible reduction in the US wheat harvest, which immediately pushed futures prices up.
The lowest offer exceeded buyers' expectations
According to traders, the lowest bid was submitted by Cargill. It was for the supply of the entire volume – 65 thousand tons – at a price of 298.5 USD per ton on cost and freight terms, as well as with an additional surcharge of 2 USD per ton for unloading at the port.
The grain was planned to be delivered in one shipment, arriving in South Korea around the end of August. However, even the lowest offer did not convince Korean buyers, who decided to refrain from concluding a contract amid a volatile market.
Please note! Purchase prices for wheat in Ukraine in May 2026 (on CPT-port/EXW-elevator terms) range from $214 to $224 per ton, or UAH 9,800 to UAH 11,100 per ton. Prices are relatively stable and supported by active demand from domestic processors and export contracts.
There were strict geographical restrictions for procurement
The terms of the tender stipulated that wheat could be of any origin, but with a number of exceptions. Grain from Russia, Argentina, China, Pakistan and Denmark were not allowed to participate.
It was separately noted that the Black Sea ports of Russia and Ukraine cannot be used for supplies, regardless of the country of origin of the grain. Analysts note that the final estimates of prices and volumes may still be revised, but the situation already demonstrates the sensitivity of the world wheat market to weather forecasts and stock market fluctuations.
Ukrainian grain scandal: Israel proposes blocking imports of wheat stolen by Russia
South Korea's concerns about importing grain from the Black Sea region are understandable. Exporting companies do not want to risk importing stolen grain. Israel has already drawn certain conclusions after such a scandal.
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The Association of Israeli Agricultural Importers has approached the Embassy of Ukraine in Israel with the aim of signing a memorandum.
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Russia exported more than 2 million tons of grain from the occupied territories in 2025, which was supplied to countries in Africa, the Middle East, and Asia.
The Embassy of Ukraine in Israel is in contact with Ukrainian specialized bodies. They are currently trying to track the logistics chains and, accordingly, the origin of the grain. They are also applying financial monitoring.