``Local flour milling firms will continue seeking more than 30,000 tonnes of US No 1 wheat this week,'' a trader with a Seoul-based foreign grain trading firm said.

Daehan Flour Mills Co Ltd would seek 11,000-12,000 tonnes of US wheat this week for August 20-September 20 shipment, the trader said.

He added that Daehan bought 28,000 tonnes of Australian milling wheat with shipment for August and another 13,500 tonnes from Canada with shipment for August 20-September 20 via private negotiations last week.

Cheil Jedang and Dongah Flour Mills Co Ltd were expected to jointly seek about 20,000 tonnes of US No 1 wheat with August/September shipment for arrival at the western Port of Inchon.

Traders said the Korea Feed Association's members in Pusan invited a tender to buy 30,000 tonnes ofEuropean feed wheat on Tuesday.

They said shipment was set for the month of August, if sourced from Europe (Black Sea), and its arrival was slated for September 30 to the southeastern ports of Pusan and Ulsan.

Recent gains in US prices were likely to lead local importers to seek comparatively cheaper Chinese corn for small-sized cargoes such as 12,000 tonnes, traders said.

``If US corn prices gain further, Chinese corn prices will get more competitiveness in the local market, while US corn prices are losing attraction,'' one trader said.

He added that local buyers' group Top Margin Committee would not delay any longer its purchase of 52,500 tonnes of US No 3 yellow corn for arrival in August, or it may seek Chinese corn to replace the US corn requirement.

``The group is the only one in the local market which has not covered its need for corn for August arrival,'' he said.

At 0735 GMT, July corn futures rose a further 2- cents per bushel to $2.23- on Monday in the Chicago Board of Trade's (CBOT)Project A system trading.

CBOT July corn ended up 3-cents at $2.20- on Friday on continuing concern over an outlook for above-normal temperatures in the US Midwest.

Shipment delays of some European feed wheat might also force local importers to seek Chinese corn to replace some of their feed wheat requirements, traders said.

Some suppliers were still experiencing difficulties in securing feed wheat at the price previously contracted with local buyers' groups as feed wheat prices had been rising due to tight supplies from East Europe.

A trader with Pan Ocean Shipping Co Ltd said freight rates for a Panamax-sized cargo for spot shipment from the Pacific Northwest eased to $12.25 a tonne from $12.50 a week earlier.

But he said the rates from the US Gulf for a Panamax-sized spot shipment fell to $16 a tonne from $16.50 a week ago.