Exports: Both corn, soybeans surge
According to USDA's latest U.S. Export Sales report, corn net sales of 393,300 metric tons (MT) for the 2012-2013 marketing year were up noticeably from the previous week and from the 4-week average.
Increases for Mexico (113,000 MT), unknown destinations (98,600 MT), Japan (68,300 MT, including 13,400 MT switched from unknown destinations and decreases of 1,100 MT), and China (62,600 MT, including 60,000 MT switched from unknown destinations), were partially offset by decreases for Colombia (6,900 MT), Jamaica (3,900 MT), and the Dominican Republic (2,000 MT). Exports of 246,900 MT were up noticeably from the previous week, but down 4 percent from the prior 4-week average. The primary destinations were Japan (86,000 MT), China (62,600 MT), Mexico (47,900 MT), and Cuba (27,500 MT).
Optional Origin Sales: For MY 2012/2013, optional origin sales totaling 68,200 MT for South Korea were exercised to export from other than the United States. Outstanding optional origin sales total 137,900 MT, and are for South Korea (117,900 MT), and Israel (20,000 MT). For MY 2013/2014, outstanding optional origin sales total 30,000 MT, all Mexico.
On Wednesday morning corn futures lost momentum after surging to a five-week high in early morning trade after the weekly Energy Information Administration report showed ethanol production at its lowest in 2 ½ years. Concerns about dryness in the central states and Argentina continue to support corn prices on Thursday, and March corn slipped 2 cents to $7.29 1/4 in early morning trading, while December fell 3 cents to $5.89 1/4 per bushel.
The report also showed that soybean net sales of 1,608,800 MT--a marketing-year high--for the 2012/2013 marketing year were for China (845,600 MT, including 60,000 MT switched from unknown destinations and decreases of 24,600 MT), Egypt (130,500 MT), the Netherlands (125,500 MT, including 125,000 MT switched from unknown destinations), Mexico (104,700 MT), and Spain (81,600 MT, including 74,000 MT switched from unknown destinations).
Decreases were reported for unknown destinations (34,100 MT) and Costa Rica (14,300 MT). Net sales of 180,000 MT for delivery in the 2013/2014 marketing year were for China. Exports of 1,280,200 MT were up 9 percent from the previous week and 11 percent from the prior 4-week average.
The primary destinations were China (723,500 MT), the Netherlands (125,500 MT), Spain (81,600 MT), Mexico (77,500 MT), and South Korea (58,900 MT).
Optional Origin Sales: For MY 2012/2013, optional origin sales totaling 126,000 MT were reported for China. Outstanding optional origin sales total 126,000 MT, all China. For MY 2013/2014, optional origin sales totaling 120,000 MT were reported for China. Outstanding optional origin sales total 120,000 MT, all China.
On Wednesday morning soybean futures were able to sustain most of their early gains well into the noon hour as talks of dryness in Argentina helped to provide support. An early-morning slide in the soybean market on Thursday did not inspire confidence, and March beans fell 5 3/4 cents to at $14.30 3/4 in pre-dawn electronic trading, while March soyoil dipped 0.28 cents to 51.03 cents/pound and March meal lost $1.8 to $417.3/ton.
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