Corn exports rebound slightly after slow slide
The USDA pushed corn net sales 17 percent higher in its weekly “U.S. Exports and Sales” report.
According to the report, corn net sales of 695,400 metric tons (MT) for 2013-2014 were up from the previous week but down 26 percent from the 4-week average.
Increases were reported for Mexico (519,700 MT), Japan (201,100 MT, including 93,500 MT switched from unknown destinations and decreases of 6,000 MT), China (111,700 MT, including 54,000 MT switched from unknown destinations and decreases of 9,000 MT), Peru (63,500 MT), Venezuela (50,100 MT, including 30,000 MT switched from unknown destinations), and Guatemala (14,100 MT, including 13,300 MT switched from unknown destinations and decreases of 700 MT).
Decreases were reported for unknown destinations (297,900 MT) and Colombia (13,500 MT). Net sales of 109,400 MT for 2014/2015 were reported for Mexico. Exports of 977,400 MT were primarily to China (370,700 MT), Mexico (278,100 MT), Japan (93,500 MT), Peru (60,100 MT), and Venezuela (49,100 MT).
However, next week’s report may again show declining export sales as China again blocked entry of another U.S. corn cargo after tests found a straight of unapproved genetically-modified corn, according to a Reuters article here. Three more may be turned away.
Since the middle of November, quarantine authorities in China, the world's second largest corn consumer, already have turned away about 180,000 tons of the grain.
“It is really causing big trouble and it seems to be related to bilateral trade conflicts,” said a corn trader with a domestic trading house.
These export concerns reemerged Wednesday Night. Doane reports that corn rallied on Wednesday in response to a sizeable export sale and talk of surging ethanol production. However, traders worry that recent rejections of U.S. shipments to China are harbingers of a wider ban by Chinese officials.
On Thursday morning, March corn futures dipped 2.25 cents to $4.37/bushel early Thursday morning, while May lost added 2.75 cents to $4.45.
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The report showed soybean net sales of 1,108,600 MT for 2013-2014, up 38 percent from the previous week and 2 percent from the 4-week average.
Increases were reported for China (558,100 MT, including 58,200 MT switched from unknown destinations and decreases of 9,200 MT), Mexico (108,400 MT), Germany (74,800 MT), Saudi Arabia (70,000 MT, switched from unknown destinations), and South Korea (59,800 MT, including 55,000 MT switched from unknown destinations).