South Korea: Grain and Feed Update
The government of Korea has approved the use of 470,000 MT (milled basis) of rice stocks for feed use in Calendar Year (CY) 2017, a quantity more than five times larger than in CY 2016. This policy will have the effect of increasing rice prices and depleting old and deteriorating stocks, but it will also lead to a decrease in the overall demand for other feed grains. Due to the relative price competitiveness of feed grade corn over feed grade wheat, Post forecasts lower consumption and imports for feed grade wheat in Marketing Year (MY) 2016/17 relative to previous projections. Meanwhile, the projections for consumption and corn imports in MY2016/17 remain unchanged. Production forecasts are not changed in this report.
