After two weeks of reporting corn net sales reduction, the USDA showed in its weekly “U.S. Export Sales” report that corn is back up. According to the report, the USDA reported 332,600 metric tons (MT) from the 2013-2014 marketing year, which began on Sept. 1. This is up substantially from last week’s report of -113,214 MT, a low for 2013.
These sales were primarily for Mexico (181,200 MT), Japan (44,300 MT, including 29,600 MT switched from unknown destinations and decreases of 4,500 MT), Costa Rica (31,600 MT, including 3,000 MT switched from El Salvador), Peru (30,000 MT), Venezuela (20,000 MT, including 10,000 MT switched from Colombia), and unknown destinations (8,800 MT). Decreases were reported for El Salvador (4,100 MT).
Net Sales reductions of 59,400 MT for delivery in 2012/2013 resulted as increases for Japan (24,900 MT, including 46,500 MT switched from unknown destinations and decreases of 21,600 MT), Jamaica (400 MT), and Hong Kong (100 MT), were more than offset by decreases for unknown destinations (46,500 MT), Mexico (21,600 MT), and Taiwan (16,700 MT).
A total of 876,100 MT in sales were outstanding on August 31 (the end of the 2012/2013 marketing year) and carried over to the 2013/2014 marketing year.
Exports of 64,700 MT were reported for August 31. The primary destinations were Japan (46,500 MT) and Mexico (11,100 MT). Accumulated exports for the 2012/2013 marketing year were 18,044,200 MT, down 52 percent from the prior year’s total of 37,914,800 MT. Exports for September 1-5 of 171,200 MT were primarily for Japan (77,700 MT), Mexico (54,800 MT), Guatemala (12,200 MT), and Venezuela (10,000 MT).
On Wednesday most ag markets proved volatile. Though talk of accelerating harvest rates in the southern half of the country and forecasts for improved weekend rainfall weighed on prices early in the day, news of export sales and active short-covering ahead of Thursday’s USDA reports pushed the market higher later in the day.
Crop markets dipped ahead of Thursday’s reports, including the monthly Crop Production and WASDE reports. December corn dipped 3.25 cents to $4.6925/bushel early Thursday morning, while May slid 3.0 cents to $4.90.
The USDA also showed that soybean net sales of 478,100 MT for the 2013-2014 marketing year were primarily for China (205,000 MT), unknown destinations (73,900 MT), Indonesia (43,300 MT, including 24,100 MT switched from unknown destinations), Costa Rica (41,000 MT), and Mexico (37,500 MT). A total of 928,500 MT in sales were outstanding on August 31 (the end of the 2012/2013 marketing year) and carried over to the 2013/2014 marketing year.
Exports of 22,900 MT were reported for August 31. The primary destinations were Venezuela (12,000 MT), Cuba (4,600 MT), Japan (2,900 MT), and Taiwan (1,100 MT).
Accumulated exports for the 2012/2013 marketing year were 36,243,000 MT, down 1 percent from the prior year’s total of 36,739,200 MT. Exports of 60,100 MT were reported for September 1-5. The primary destinations were Indonesia (37,700 MT), South Korea (10,500 MT), Malaysia (3,100 MT), Taiwan (2,900 MT), and Vietnam (2,400 MT).
On Wednesday the prospect of reduced Chinese production supported soybeans after Chinese officials reportedly expect their current soybean crop to fall more than 4 percent short of the year-ago total, which bodes well for future import demand. Long liquidation also seemed to hit the soy complex Thursday morning. November soybeans fell 6.25 cents to $13.52/bushel in early Thursday trading, whereas October soyoil gained 0.13 cents to 42.85 cents/pound, and October soymeal declined $2.7 to $426.5/ton.