Report Highlights:

The Korean government announced that it will seek to mitigate overproduction of rice through measures including reduction of area for rice cultivation to 711,000 Ha by 2018, planting of other crops in paddy land, releasing of stocks for use in animal feed, and promotional activities to increase consumption. Meanwhile, US rice tenders reached a record 38 percent of the WTO-mandated TRQ in 2015, representing 157,117 MT (milled basis) worth $142.6 million. MY 2015/16 wheat imports are revised up to 4.3 million tons, as competitively-priced feed grade wheat replaces corn. Meanwhile, MY 2015/16 corn imports remain unchanged at 10 million tons, however, U.S. corn exports are revised down to 3 million tons due to a greater supply of competitively-priced South American corn.

WHEAT

Production:

Wheat production remains unchanged from the previous report.

Korea: Wheat Production

Crop Year

Harvested Area(Hectare)

Yield(MT/HA)

Production(MT)

2006

1,738

3.34

5,810

2007

1,928

3.81

7,624

2008

2,549

4.06

10,359

2009

5,067

5.15

26,087

2010

12,548

3.12

39,116

2011

13,044

3.35

43,677

2012

9,467

3.91

37,014

2013

7,373

3.68

27,130

2014

7,180

3.26

23,409

2015a/

10,076

3.55

35,800

Consumption:

MY 2015/16 wheat consumption forecast is revised up to 4.2 million tons from the previous estimate with respect to increased feed grade wheat use during the first five months, while milling wheat consumption maintains a similar level to that of the previous year period.

Korea: Post Estimates of Domestic Wheat Use

(1,000 MT, July/June)

Year

2012/13

2013/14

2014/15c/

2015/16c/

Imported Milling Wheat 1/

2,193

2,132

2,165

2,150

Imported Milling Wheat 2/

167

180

180

180

Flour Imports a/

39

30

44

35

Flour Exports a/

62

58

61

65

Pasta Imports a/

135

150

143

155

Pasta Exports a/

130

140

135

140

Local Wheat

37

27

23

36

FSI Consumptionb/

2,379

2,321

2,359

2,351

Feed Wheat

2,818

1,936

1,490

1,800

Total Consumptionb/

5,197

4,257

3,849

4,151

Source: Korea Feed Association (KFA), Korea Flour Millers Industry Association (KOFMIA) and Korea Customs Service (KCS)

a/ Wheat basis

b/ include local wheat, flour imports and pasta imports but exclude flour exports and pasta exports

c/ FAS/Seoul forecast

1/ KOFMIA members

2/ non- KOFMIA member

Korea: Monthly Wheat Use

(1,000 MT)

Month

Feed Wheat

Milling Wheat a/

MY 2013/14

MY 2014/15

MY 2015/16

MY 2013/14

MY 2014/15

MY 2015/16

July

235

129

124

176

183

181

August

219

121

119

173

175

170

September

226

126

124

156

166

178

October

245

134

151

185

179

182

November

205

130

140

180

172

169

Subtotal

1,130

640

658

870

875

880

December

159

143

na

180

186

na

January

125

123

na

184

194

na

February

100

103

na

161

152

na

March

101

116

na

176

183

na

April

100

120

na

180

176

na

May

108

119

na

177

172

na

June

114

125

na

175

177

na

Total

1,936

1,490

na

2,102

2,115

na

Source: KFA and KOFMIA

a/ includes wheat flour exports, but excludes the portion used in soy-sauce production

Wheat Trade:

MY 2015/16 wheat imports are revised up to 4.3 million tons from the initial projection of 4 million tons due to increased feed grade wheat imports, while 2.5 million tons for milling wheat (including flour and pasta imports on a wheat equivalent basis) is unchanged. Milling wheat for flour processing is expected to remain at around 2.3 million tons.

As of early January 2016, Korean feed millers have completed contracts for delivery of feed grade wheat for the first ten months of MY 2015/2016 (Jul/Jun) at approximately 1.5 million tons, as feed grade wheat has become competitive with feed corn as the price disparity between them in the global markets has narrowed. As such, feed millers are expected to contract further amounts of feed wheat for the remainder of the marketing year.

Korea: Wheat Imports

(1,000 MT, Customs Cleared Basis)

Marketing Year

(July/June)

Feed Wheat

Milling Wheat

Flour Imports

1/

Pasta Import

1/

Total

05/06

1,536

2,220

41

101

3,898

06/07

976

2,298

69

108

3,451

07/08

565

2,317

105

117

3,104

08/09

1,151

2,058

69

105

3,383

09/10

2,164

2,071

127

119

4,481

10/11

2,075

2,520

63

123

4,781

11/12

2,868

2,169

42

122

5,201

12/13

2,820

2,461

39

135

5,455

13/14

1,948

2,181

30

150

4,309

14/15

1,391

2,370

44

143

3,948

15/162/

1,800

2,300

40

160

4,300

Source: Korea Customs Service

1/ Wheat basis

2/ FAS/Seoul forecast

Korea: MY 20015/16 Monthly Wheat Imports by Origin

(1,000 MT, based on Customs Clearance)

Country

U. S.

Australia

Canada

India

Other

Total

Milling Wheat

2015 July

116

114

13

0

1

244

August

37

96

0

0

0

133

September

96

94

33

0

1

224

October

122

78

0

0

1

201

November

103

77

14

0

1

195

December

69

115

32

0

0

216

Total(Jul-Dec) 2015

543

574

92

0

4

1,213

Total(Jul-Dec) 2014

564

507

98

0

2

1,170

Feed Wheat

2015 July

0

0

0

0

162

162

August

0

0

0

0

58

58

September

0

0

0

0

211

211

October

0

0

0

0

200

200

November

0

0

0

0

191

191

December

0

0

0

0

110

110

Total(Jul-Dec) 2015

0

0

0

0

932a/

932

Total(Jul-Dec) 2014

47

0

102

10

556

715

Total Wheat

2015 July

116

114

13

0

163

406

August

37

96

0

0

58

191

September

96

94

33

0

212

435

October

122

78

0

0

201

401

November

103

77

14

0

192

386

December

69

115

32

0

110

326

Total(Jul-Dec) 2015

543

574

92

0

936

2,145

Total(Jul-Dec) 2014

611

507

198

10

557

1,887

Source: Korea Customs Service

a/ Ukraine (657,228 MT); France (169,086 MT); Bulgaria (63,922 MT); Denmark (42,039 MT)

Korea: MY 2015/16 Feed Wheat Contracts

by

Estimated Time of Arrival (ETA)

(Unit: 1,000 MT, as of Dec. 30, 2015)

ETA

Quantity

Price (US$/MT)1/

Jul. 2015

0

0

Aug.

233

213.96

Sep.

159

205.77

Oct.

232

203.47

Nov.

116

202.60

Dec.

55

205.30

Jan. 2016

123

201.77

Feb.

85

200.73

Mar.

255

190.85

Apr.

160

190.25

May

69

182.75

Total

1,490

Wheat PS&D

Wheat

2013/2014

2014/2015

2015/2016

Market Begin Year

Jul 2013

Jul 2014

May 2015

Korea, Republic of

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Area Harvested

7

7

7

7

10

10

Beginning Stocks

1521

1521

1437

1402

1411

1328

Production

27

27

23

23

36

36

MY Imports

4288

4309

3942

3948

4200

4300

TY Imports

4288

4309

3942

3948

4200

4300

TY Imp. from U.S.

1409

1220

1160

1234

0

1300

Total Supply

5836

5857

5402

5373

5647

5664

MY Exports

144

198

153

196

150

200

TY Exports

144

198

153

196

150

200

Feed and Residual

1936

1936

1479

1490

1500

1800

FSI Consumption

2319

2321

2359

2359

2351

2351

Total Consumption

4255

4257

3838

3849

3851

4151

Ending Stocks

1437

1402

1411

1328

1646

1313

Total Distribution

5836

5857

5402

5373

5647

5664

(1000 HA) ,(1000 MT)

CORN

Production:

Post's corn production estimate remains unchanged from the previous report.

Korea: Corn Production

Crop Year

Area (HA)

Yield (MT/HA)

Production (MT)

2006

13,661

4.73

64,623

2007

16,981

4.82

83,513

2008

18,366

5.05

92,830

2009

15,326

5.02

76,975

2010

15,528

4.79

74,339

2011

15,823

4.65

73,612

2012

17,001

4.89

83,210

2013

15,905

5.06

80,465

2014

15,839

5.18

82,008

2015a/

15,800

4.91

77,640

Source: Ministry for Agriculture, Food, and Rural Affairs (MAFRA), Statistics Korea (KOSTAT)

a/ FAS/Seoul projection based on five-year average yield

Consumption:

MY 2015/16 corn consumption forecast remains unchanged at 10.1 million tons from the previous report, which is composed of 8 million tons for feed, and 2.1 million tons for food, seed and industrial (FSI) purpose. However, demand for feed corn may be affected by a competitively-priced feed grade wheat supply in the global market. In MY 2015/16, compound feed production remains at 18.9 million tons as projected in our initial forecast. However, a recent recurrence of foot and mouth disease (FMD) may affect the level of compound feed production later.

MY 2014/15 corn consumption was estimated at a record 10.2 million tons due to greater demand for feed and food processing purposes, which was composed of 8.0 million tons for feed, and 2.2 million tons for food, seed and industrial (FSI), up three percent from the previous marketing year.

MY 2014/15 compound feed production was a record 19 million tons, 0.8 percent higher than the previous marketing year, due to strong demand from the poultry sector which partly offset weaker demand from the cattle sector. Poultry compound feed production increased by 8.7 percent from the previous marketing year, while compound feed production for cattle declined by 6.4 percent.

The corn inclusion rate in total compound feed production grew to 42.3 percent in MY 2014/15, up 1.1 percent point from the previous year with feed wheat use declining.

In MY 2014/15, processing corn consumption increased by four percent to more than 2.1 million tons from 2.0 million tons in MY 2013/14. Wet millers consumed 96.3 percent of total processing corn with the remainder for dry millers. Major corn processors have continued using traditional corn imported from Serbia, Ukraine, Russia, Hungary, Romania, Bulgaria, Australia and Brazil, and non-GM corn imported from the United States for food. Many Korean food processing companies are reluctant to use ingredients sourced from biotech corn.

Korea: Total Corn Utilization

(Oct./Sept., 1,000 MT)

Marketing

Year

Feed

Processing

a/

Food

b/

Total

2008/09

6,368

1,418

108

7,894

2009/10

6,362

1,928

92

8,382

2010/11

6,074

2,051

89

8,214

2011/12

5,690

2,036

89

7,815

2012/13

6,483

1,900

98

8,481

2013/14

7,762

2,034

95

9,891

2014/15 c/

8,035

2,118

97

10,250

2015/16 d/

8,000

2,000

95

10,095

Source: Korea Feed Association (KFA), Korea Corn Processing Industry Association (KOCPIA)

a/ Used for wet and dry milling process based on imported corn.

b/ For on-farm human consumption (on-the-cob) or snack food consumed on-the-cob, as puffed kernels or as corn tea. Imported white corn for popping has been included since MY 2004.

c/ based on the imports for the first eleven months.

d/ FAS Seoul forecast

Korea: Monthly Corn Use

(1,000 MT)

Month

Feed Corn

Processing Corn

MY 2012/13

MY 2013/14

MY 2014/15

MY 2012/13

MY 2013/14

MY 2014/15

October

508

588

676

174

175

180

November

512

596

620

169

165

178

December

559

687

707

160

163

169

January

580

703

675

158

161

170

February

513

632

602

137

148

155

March

533

653

668

140

180

187

April

572

664

679

158

171

178

May

574

669

679

161

177

183

June

522

646

703

153

176

181

July

553

659

701

173

184

183

August

528

626

655

163

175

181

September

529

639

670

156

159

173

Total

6,483

7,762

8,035

1,900

2,034

2,118

Korea: Feed Ingredient Use for Compound Feed Production

(October/September, 1,000 MT)

Items

MY 2012/13

MY 2013/14

MY 2014/15

MY 2015/16a/

Sub. Total Grains and Grain Substitutes

12,115

12,080

12,046

12,300

- Wheat

2,710

1,633

1,480

1,800

- Corn

6,483

7,762

8,035

8,000

- Other Grains and Grain Substitute b/

2,992

2,685

2,531

2,500

Others c/

6,698

6,758

6,951

6,600

Grand Total

18,883

18,838

18,997

18,900

Source: Korea Feed Association (KFA)

a/ FAS Seoul forecast

b/ includes Tapioca, bran and gluten feed.

c/ includes vegetable protein meal, animal protein, minerals/additives, tallow, DDGS and molasses.

Korea: Compound Feed Production by Species

(October/September, 1,000 MT)

Species

MY 2012/13

MY 2013/14

MY 2014/15

MY 2015/16a/

Poultry

4,726

5,107

5,551

5,500

Swine

6,100

6,015

6,049

6,200

Cattle

6,572

6,388

5,978

5,800

Others b/

1,483

1,314

1,388

1,400

Total

18,881

18,824

18,967

18,900

Source: Ministry for Agriculture, Food, and Rural Affairs (MAFRA)

a/ FAS/Seoul forecast

b/ include ducks, rabbit, horse, sheep, deer, quail etc

Korea: Compound Feed Production Comparison by Species

for

the First Two Months

(October/November, 1,000 MT)

Species

MY 2014/15

MY 2015/16

Change

Poultry

845

933

+10.4

Swine

1,040

1,076

+3.5

Cattle

1,029

985

-4.3

Others

218

242

+11.0

Total

3,133

3,247

+3.6

Korea: Feed Ingredients Use for MY2013-MY2014

(1,000 MT, October/September)

INGREDIENT

MY2013/2014

MY2014/2015

TOTAL

DOM 1/

%

TOTAL

DOM 1/

%

GRAINS:

CORN

7,762

-

41.2

8,035

1

42.3

SORGHUM

-

-

-

-

-

0.0

WHEAT

1,633

-

8.7

1,480

1

7.8

BARLEY

28

2

0.1

28

2

0.1

RYE

0

0

-

0

0

0.0

OATS

3

1

-

3

1

0.0

GSP/BROKEN GRAIN

88

88

0.5

96

96

0.5

TAPIOCA

284

-

1.5

257

0

1.4

LUPIN SEED

131

6

0.7

134

14

0.7

OTHERS

173

167

0.9

173

168

0.9

SUB TOTAL

10,102

264

53.6

10,206

283

53.7

GRAIN BY-PRODUCTS:

WHEAT BRAN

599

393

3.2

562

391

3.0

RICE BRAN

187

187

1.0

193

190

1.0

BARLEY BRAN

-

-

-

-

-

0.0

CORN BRAN

2

2

-

1

1

0.0

GLUTEN FEED

848

374

4.5

766

366

4.0

OTHERS

342

266

1.8

318

233

1.7

SUB TOTAL

1,978

1,222

10.5

1,840

1,181

9.7

ANIMAL PROTEIN:

FISH MEAL

18

12

0.1

18

12

0.1

MEAT & BONE MEAL

22

21

0.1

24

23

0.1

OTHERS

146

143

0.8

147

145

0.8

SUB TOTAL

186

176

1.0

189

180

1.0

VEGETABLE PROTEIN:

SOYBEAN MEAL

2,079

411

11.0

2,272

560

12.0

RAPESEED MEAL

530

6

2.8

489

1

2.6

SESAMESEED MEAL

23

23

0.1

33

33

0.2

PERILLA SEED MEAL

3

3

-

1

1

0.0

CORN GLUTEN MEAL

81

73

0.4

82

74

0.4

DDGS

536

158

2.8

654

215

3.4

COTTONSEED MEAL

1

0

-

1

0

0.0

PARM KERNEL MEAL

760

8

4.0

686

9

3.6

COPRA MEAL

399

2

2.1

403

0

2.1

OTHERS

262

216

1.4

246

205

1.3

SUB TOTAL

4,674

900

24.8

4,867

1,098

25.6

ADDITIVES/MINERALS:

CALCIUM PHOSPHATE

67

54

0.4

72

57

0.4

LIMESTONE

480

480

2.5

503

503

2.6

SALT

67

67

0.4

67

66

0.4

OTHER

291

289

1.5

276

272

1.5

SUB TOTAL

905

890

4.8

918

898

4.9

OTHER INGREDIENTS:

TALLOW

316

312

1.7

329

319

1.7

MOLASSES

461

383

2.4

426

345

2.2

UREA

2

2

-

2

2

0.0

OTHER

214

192

1.1

220

190

1.2

SUB TOTAL

993

889

5.3

977

856

5.1

GRAND TOTAL

18,838

4,341

100.0

18,997

4,496

100.0

Trade:

MY 2015/16 total corn imports remain unchanged from 10 million tons forecast in the previous report due to high levels in animal inventories. Processing corn imports are expected to remain stagnant at 2 million tons.

As of early January 2016, importers contracted 6.7 million tons of corn for October 2015 through May 2016 deliveries, continuing to make contracts for June 2016 arrival onward. Most feed corn contracts are optional origin at seller's option from South American countries, Eastern Europe, or the United States with a price range of USD 179-203 per metric ton CNF, while corn processors have contracted for No. 2 GM/non-GM yellow corn from South America or the United States, and conventional corn from Eastern Europe with a price range of USD 186-206 per metric ton CNF. Most recent buying contracts stabilized in the range of USD 179-181 per ton CNF for feed corn and USD 186-191 for processing corn.

In MY 2015/16, U.S. corn exports to Korea are revised to 3 million tons, down 1 million tons from post's previous forecast due to a greater supply of competitively priced South American corn. For the first three months of the marketing year, U.S. corn market share was about 14 percent, while South American share was more than 70 percent.

Korea: Corn Imports

(1,000MT, Customs Cleared Basis)

Marketing Year

From World

From the U. S.

U. S. Share

Feed

Processing

Total

Feed

Processing

Total

%

07/08

7,680

1,629

9,309

7,259

1,077

8,336

90

08/09

5,781

1,431

7,212

4,883

921

5,804

80

09/10

6,457

2,003

8,460

6,097

1,407

7,504

89

10/11

6,060

2,047

8,107

5,183

1,133

6,316

78

11/12

5,600

2,035

7,635

3,450

307

3,757

49

12/13

6,230

1,944

8,174

341

115

456

6

13/14

8,319

2,086

10,405

3,769

842

4,611

44

14/15

8,055

2,112

10,167

3,495

527

4,022

40

15/16

8,000

2,000

10,000

2,500

500

3,000

30

Korea: Monthly Corn Import

(1,000 MT, Customs Cleared Basis)

Month

Feed Corn

Processing Corn

MY 2013/14

MY 2014/15

MY 2015/16

MY 2013/14

MY 2014/15

MY 2015/16

October

620

846

651

131

181

171

November

631

465

673

178

183

175

December

975

750

853

222

137

211

Sub Total

2,226

2,061

2,177

531

501

557

January

885

743

na

118

168

na

February

829

558

na

170

138

na

March

488

636

na

158

258

na

April

664

759

na

234

145

na

May

698

689

na

166

163

na

June

540

636

na

300

208

na

July

591

693

na

85

166

na

August

658

671

na

112

177

na

September

740

609

na

212

188

na

Total

8,319

8,055

na

2,086

2,112

na

Korea: MY 2015/16 Corn Contracts 1/ by Estimated Time of Arrival (ETA)

(Unit: 1,000 MT, as of Dec. 2015)

ETA

U.S.

Europe 4/

SOAM

Others 2/

Total

Price3/

Oct. 2015

55

0

0

888

943

195

Nov.

0

108

0

678

786

195

Dec.

0

100

0

610

710

189

Jan. 2016

0

60

0

548

608

190

Feb.

0

60

55

586

701

188

Mar.

110

0

65

715

890

191

Apr.

0

0

183

802

985

190

May

0

0

289

440

729

184

Jun.

0

0

277

50

327

185

Total

165

328

869

5,317

6,679

Source: Local Grain Traders

1/ reflecting 90-95 percent of actual contracts due to the omission of some data on contracts

2/ optional origins at seller's option out of USA, SOAM (South America) or Europe

3/ USD/MT, CNF on Weighted Average

4/ include Eastern Europe and Black Sea

Corn PS&D

Corn

2013/2014

2014/2015

2015/2016

Market Begin Year

Oct 2013

Oct 2014

Oct 2015

Korea, Republic of

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Area Harvested

16

16

16

16

16

16

Beginning Stocks

1265

1265

1860

1860

1921

1860

Production

80

80

82

82

77

77

MY Imports

10406

10406

10179

10168

10000

10000

TY Imports

10406

10406

10179

10168

10000

10000

TY Imp. from U.S.

5312

4611

3656

4022

0

3000

Total Supply

11751

11751

12121

12110

11998

11937

MY Exports

0

0

0

0

0

0

TY Exports

0

0

0

0

0

0

Feed and Residual

7762

7762

8000

8035

8000

8000

FSI Consumption

2129

2129

2200

2215

2100

2100

Total Consumption

9891

9891

10200

10250

10100

10100

Ending Stocks

1860

1860

1921

1860

1898

1837

Total Distribution

11751

11751

12121

12110

11998

11937

(1000 HA) ,(1000 MT)

RICE

PRODUCTION

Higher than normal average yield for the past few years led the Korean government to seek a balance between rice supply and demand by 2018 through a gradual reduction in area and promotional activities to expand consumption.

The Ministry of Agriculture, Food and Rural Affairs (MAFRA) recently released its plan to reduce arable land for rice cultivation to 711,000 hectares by 2018, significantly smaller than the 749,000 hectares of paddies that would be reached without any action taken.

In line with the rice reduction scheme, the government plans to introduce the Production Adjustment Program which will encourage rice farmers to cultivate other crops in their paddy lands, up to 30,000 hectares across the nation in CY 2017.

CONSUMPTION

Korea's rice consumption pattern remains unchanged from the previous report.

Korea: Rice Utilization Pattern

(1,000 MT, milled)

Rice Year (Nov. - Oct.)

MY 2012/13a/

MY 2013/14b/

MY 2014/15c/

MY 2015/16d/

Table Rice

3,435

3,340

3,272

3,193

Processing

526

535

608

663

(for food)

(470)

(457)

(518)

(523)

(for liquor)

(56)

(78)

(90)

(140)

Seed

36

35

35

34

Other and Loss

494

512

500

500

Total Demand

4,491

4,422

4,415

4,390

Per Capita Table Rice Consumption (Kg)

67.2

65.1

63.5

61.8

Source: Ministry of Agriculture, Food and Rural Affairs (MAFRA)

a/ Revised b/ Preliminary c/ FAS/Seoul estimate d/ FAS/Seoul forecast

TRADE

In MY 2015/16, rice imports are expected to remain unchanged at 470,000 metric tons, while actual delivery of some portion of the TRQ will roll over into the following year. U.S. rice exports are expected to stay around 150,000 metric tons (milled). 2016 TRQ purchasing plan is expected to be released by the Korean government in the near future.

In MY 2014/15, Korea's rice imports were 464,892 MT, consisting of 217,855 MT imported under the 2014 MMA quota and 247,037 MT imported under 2015 TRQ, respectively. In CY 2015, U.S. exports to Korea amounted to 142,806 MT, which is composed of 34,114MT imported under 2014 MMA quota and 108,682 MT imported under 2015 TRQ, respectively.

2015 TRQ Tendering Results:

The Korean government submitted a draft containing modifications and rectifications to “Schedule LX - Republic of Korea" to the WTO on September 30, 2014, which allowed Korea to implement ordinary customs duties on rice beginning January 1, 2015. However, five countries reserved their positions with respect to the proposed rectification and modification of the Republic of Korea's tariff schedule concerning rice market access. Korea continues to engage in bilateral discussions with the concerned countries for settlement of the issue. The United States is working closely with Korea to urge it to ensure that the new arrangement takes appropriate account of our strong trading relationship in this commodity.

As agreed in the special treatment, Korea continued to import the mandatory import volume of 408,700 metric tons from Most Favored Nation (MFN) countries at the current duty level of 5 percent under the tariff rate quota (TRQ) regime in 2015 and beyond. Korea deleted provisions about usage purpose, such as the ratio of table rice (30 percent) and guaranteed access to the domestic market.

The Korea Agro-Fisheries and Food Trade Corporation (aT) completed the tendering process for the 2015 Tariff Rate Quota (TRQ) commitments for rice on December 30, 2015. Korea purchased a total of 408,700 metric tons (MT) of rice (milled basis) from the United States, China, Thailand, Australia, and Vietnam. The U.S. share was a record 38 percent, up about 2.6 times from the previous year due to more competitive pricing than other countries in tandem with greater demand for medium grain variety, with contracts totaling 157,117 MT (milled) worth USD 142.6 million. U.S. contracts of 130,130 MT were for brown rice (equivalent to 117,117 MT on milled basis) for food processing purpose, while the remaining 40,000 MT was milled rice for table purpose.

Table Rice: The Korean government purchased 60,000 MT of milled rice for table purpose, half of the previous year, consisting of 40,000 MT of USDA No. 1 medium grain from the United States and 20,000 MT of USDA No. 1 short grain from China. Political circles pressured the ROK government to reduce the scale of table rice imports down to half of that imported in the final year (2104) under the Minimum Market Access regime.

The average contracted price for U.S. #1 table rice was at USD 915.57/MT, down 13 percent from the previous year. Meanwhile, the average contracted price for Chinese #1 table rice was at USD 998/MT, down just 1 percent from the previous average.

Korea: 2015 MMA Rice Tender Results

(as of December 30, 2015)

Bid Date (mm-dd-yy)

Rice Type

Volume (Contract Basis)

Volume (Milled Rice Basis)

Origin

Price (US$/MT)

Terms and Conditions

delivery Due

Agent

Supplier

1/28/2015

MG #3 Brown

5,000

4,500

USA

786.00

CIP

20150531

Seo-Mok

ADM

1/28/2015

LG #3 Brown

15,000

13,500

Vietnam

442.00

CIP

20150430

Daewoo

Vinafood1

1/28/2015

LG #3 Brown

15,000

13,500

Vietnam

449.60

CIP

20150630

Daewoo

Vinafood1

2/26/2015

SG #3 Brown

22,000

19,800

China

870.00

CIP

20150531

Daewoo

COFCO

2/26/2015

MG #3 Brown

22,000

19,800

USA

856.00

CIP

20150531

Seo-Mok

ADM

3/24/2015

SG #3 Brown

12,000

10,800

China

879.85

CIP

20150630

Singsong

Jilin Grain

3/24/2015

SG #3 Brown

10,000

9,000

China

879.95

CIP

20150630

Singsong

Jilin Grain

3/24/2015

SG #3 Brown

11,897

10,707

China

890.00

CIP

20150930

Daewoo

COFCO

4/21/2015

SG #3 Brown

20,000

18,000

China

893.50

CIP

20150815

Daewoo

COFCO

4/21/2015

SG #3 Brown

10,000

9,000

China

890.00

CIP

20150831

Singsong

Jilin Grain

4/21/2015

SG #3 Brown

10,000

9,000

China

890.00

CIP

20150915

Singsong

Jilin Grain

4/21/2015

SG #3 Brown

10,000

9,000

Australia

872.90

CIP

20150915

D&B

Sun Rice

4/21/2015

SG #3 Brown

5,000

4,500

USA

826.98

CIP

20150815

Singsong

ACC

4/21/2015

MG #3 Brown

5,000

4,500

USA

834.67

CIP

20150831

Seo-Mok

ADM

4/21/2015

MG #3 Brown

15,000

13,500

USA

873.34

CIP

20150831

Seo-Mok

ADM

4/21/2015

MG #3 Brown

7,000

6,300

USA

825.47

CIP

20150915

Singsong

ACC

4/21/2015

MG #3 Brown

5,000

4,500

USA

821.95

CIP

20150930

Singsong

ACC

5/21/2015

SG #3 Brown

10,000

9,000

China

860.00

CIP

20151015

Singsong

Jilin Grain

5/21/2015

SG #3 Brown

17,026

15,323

China

890.00

CIP

20151031

Daewoo

COFCO

5/21/2015

MG #3 Brown

5,000

4,500

USA

836.07

CIP

20151015

Singsong

ACC

5/21/2015

MG #3 Brown

5,000

4,500

USA

835.40

CIP

20151031

Singsong

ACC

5/21/2015

MG #3 Brown

9,000

8,100

USA

831.17

CIP

20151130

Singsong

ACC

7/3/2015

SG #3 Brown

15,000

13,500

China

893.00

CIP

20151130

Daewoo

COFCO

7/3/2015

MG #3 Brown

18,000

16,200

China

849.00

CIP

20151031

Daewoo

COFCO

7/3/2015

MG #3 Brown

5,000

4,500

USA

840.67

CIP

20151130

Seo-Mok

ADM

7/3/2015

MG #3 Brown

5,352

4,817

USA

843.80

CIP

20151130

D&B

Sun Rice

7/3/2015

MG #3 Brown

9,000

8,100

USA

833.96

CIP

20151215

Daewoo

FRC

7/3/2015

LG #3 Brown

6,752

6,077

Thailand

438.34

CIP

20151031

Hyolim

Chiameng

7/31/2015

SG #1 Milled

10,000

10,000

China

998.78

CIF

20160131

Daewoo

COFCO

7/31/2015

MG #1 Milled

5,000

5,000

USA

961.00

CIF

20151130

Seo-Mok

ADM

7/31/2015

MG #1 Milled

5,000

5,000

USA

961.00

CIF

20151215

Seo-Mok

ADM

7/31/2015

MG #1 Milled

10,000

10,000

USA

961.00

CIF

20160229

Seo-Mok

ADM

7/31/2015

#4 Brewer's Milled

11,000

11,000

Vietnam

384.40

CIP

20151130

Daewoo

Vinafood1

12/9/2015

SG #3 Brown

10,000

9,000

China

888.00

CIP

20160430

Daewoo

COFCO

12/9/2015

SG #3 Brown

12,000

10,800

China

889.98

CIP

20160430

Singsong

Jilin Grain

12/9/2015

SG #3 Brown

11,333

10,200

China

890.00

CIP

20160430

Daewoo

COFCO

12/9/2015

MG #3 Brown

10,000

9,000

USA

714.64

CIP

20160331

Philasun

ADM

12/9/2015

MG #3 Brown

5,555

5,000

USA

712.64

CIP

20160430

Philasun

ADM

12/9/2015

MG #3 Brown

6,667

6,000

USA

718.34

CIP

20160430

Philasun

ADM

12/30/2015

SG #1 Milled

10,000

10,000

China

998.00

CIF

20160630

Singsong

Jilin Grain

12/30/2015

MG #1 Milled

5,000

5,000

USA

865.18

CIF

20160515

Singsong

ACC

12/30/2015

MG #1 Milled

5,000

5,000

USA

865.19

CIF

20160531

Singsong

ACC

12/30/2015

MG #1 Milled

10,000

10,000

USA

875.09

CIF

20160630

Singsong

ACC

12/30/2015

SG #3 Brown

9,083

8,176

China

890.00

CIP

20160331

Daewoo

COFCO

12/30/2015

MG #3 Brown

5,556

5,000

USA

711.40

CIP

20160430

Singsong

ACC

Total

446,221

408,700

Source: Korea Agro-Fisheries and Food Trade Corporation (aT)

Note: Milling rate for milled rice is applicable at 90 percent of brown rice, and vice versa.

LG denotes long grain, SG short grain and MG medium grain, respectively.

CIP: Carriage and insurance Paid to—Commodity + Ocean Freight + Insurance + Unloading Charge + Customs Clearance Fee

CIF: Cost, Freight and Insurance

Auctions for Imported Table Rice:

Korea Agro-Fisheries & Food Trade Corporation (aT) sells table rice shipments through a public auction system, while the Ministry of Agriculture, Food and Rural Affairs (MAFRA) distributes processing rice to end-users such as food processors and alcoholic beverage producers at a set price throughout the year.

In response to more favorable consumer confidence in U.S. medium grain milled rice, greater demand for U.S. milled rice made auctions of USDA No. 1 higher than other origins. Ongoing auctions of U.S. medium grain milled rice (USDA No. 1) account for more than 50 percent while Chinese short grain milled rice are less than 40 percent. The overall progress of auctioning has been comparably slower than normal in order to prop up domestic rice prices caused by the recent record harvest of the new crop.

Exports:

Korea's rice exports were 1,804 metric tons for the first eleven months in CY 2015, with an expectation for the year of slightly less than 2,000 MT. U.S. imports of Korean rice are expected to be higher than the previous year for the period.

Korea is expected to increase rice exports to China, as mutually agreed upon SPS requirements are finalized. Korea has been pushing for China to open its market to South Korean rice since 2009, but China's strict hygiene regulations hindered progress to date. The deal was ratified by both countries' governments on January 13, 2016.

Korea: Rice Export

(Milled)

Calendar Year

To the World

To the United States

Quantity (MT)

Value (US$1,000)

Quantity (MT)

Value (US$1,000)

2005

18

89

5

5

2006

9

40

0.2

1

2007

507

1,322

333

876

2008

356

829

115

285

2009

4,183

7,300

443

777

2010

3,765

6,394

272

587

2011

3,782

6,277

161

244

2012

2,223

4,424

90

185

2013

1,517

3,363

86

180

2014

1,684

3,894

123

303

2015

1,987

4,472

365

1,148

Stocks:

MY 2015/16 ending stocks (through the end of October 2016) are forecast to increase to 1.6 million tons or 36 percent of total anticipated domestic consumption. Rice production in the past three years has been greater than actual demand with the decline of per capita table rice consumption continuing. MY 2014/15 stocks (at the end of October 2015) are estimated at about 1.2 million tons or 27 percent of total domestic consumption.

Korea: Status of Rice Stocks

(Milled rice, 1,000 MT, as of end October)

Rice Year (Nov.-Oct.)

2010/11

2011/12

2012/13a/

2013/14b/

2014/15c/

2015/16c/

Total

1,034

730

755

899

1,188

1,591

Government Stock

984

730

755

899

1,188

1,591

-Domestic Rice

696

487

na

na

na

na

-Imported Rice

288

243

na

na

na

na

Civil Stock

50

0

0

0

0

0

Rice PS&D

Rice, Milled

2013/2014

2014/2015

2015/2016

Market Begin Year

Nov 2013

Nov 2014

Nov 2015

Korea, Republic of

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Area Harvested

833

833

816

816

799

799

Beginning Stocks

780

780

899

899

1140

1188

Milled Production

4230

4230

4241

4241

4327

4327

Rough Production

5632

5632

5638

5638

5771

5771

Milling Rate (.9999)

7511

7511

7522

7522

7498

7498

MY Imports

313

313

450

465

470

470

TY Imports

379

379

370

372

410

410

TY Imp. from U.S.

38

38

0

143

0

140

Total Supply

5323

5323

5590

5605

5937

5985

MY Exports

2

2

2

2

2

4

TY Exports

2

2

2

2

2

4

Consumption and Residual

4422

4422

4448

4415

4355

4390

Ending Stocks

899

899

1140

1188

1580

1591

Total Distribution

5323

5323

5590

5605

5937

5985

(1000 HA) ,(1000 MT)