Traders didn't expect much in the way of export sales for corn from this morning's weekly tally by USDA. They got even less.
Net new bookings of old crop corn totaled just 4.6 million bushels, with actual shipments of previous deals also poor at 7.6 million. The shipments total was barely a third of the amount needed to move every week through the end of August to reach USDA's current forecast. But will big supplies expected to be available from Brazil's second crop this summer, world buyers are likely to keep shunning U.S. originations.
The weak totals increase potential for UDA to lower its forecast of marketing year exports in Friday's monthly production, supply and demand report, increasing old crop carryout. Old crop exports are already forecast at a record low for the modern era.
Slow pace could cause USDA to raise its forecast of carryout in Friday's report.
Greater supplies of new crop should help sales of 2013 corn rebound. New crop sales are at their third highest pre-season total since 1987.
Old crop soybean sales are also winding down, with old crop sales of 7.1 million bushels in the latest week. New crop purchases were better, at 14.4 million bushels, bringing the total for the week in line with trade guesses. China accounted for the lion's share of the new crop total, and USDA later announced another sale to the world's largest importer under its daily reporting system for large purchases. The 4 million bushels announced today come after another 4.2 million bushels announced on Wednesday.
Wheat export news was a little bearish for old crop. Net new bookings of 2012 wheat totaled 8.8 million bushels, not far from the rate needed to reach USDA's forecast for the marketing year that ends at the end of the month. However, shipments of 20.6 million fell well below the rate needed to move out, increasing potential for the government to lower its old crop forecast of sales in tomorrow's report.
New crop wheat sales of 8.3 million bushels were lackluster, but the total so far is well above average headed into the start of the next marketing year.