It looks like buyers knew a bargain when the saw it. Export sales of U.S. corn surged last week ahead of this week's USDA and subsequent rally. Total old and new crop business hit 52.6 million bushels, according to the government, well above last week and trade guesses.
Japan, the biggest customer traditionally for U.S. corn, snapped up the most grain, taking 23.2 million bushels of new crop corn alone. Mexico and South Korea, other regulars on the shopping list, also were good buyers.
While shipments of corn were good at 45.5 million bushels, that figure continues to lag behind the weekly rate forecast by USDA for the rest of the marketing year. That's one reason why the government lowered its estimate of 2007 crop sales in Tuesday report.
Traders will be anxious to see whether this week's sharp rally causes more buying, or convinces end users to step away from the market. South Korea cancelled a tender for almost 9 million bushels today due to "high prices."
Wheat business continues to hum along, as buyers restock shelves following last year's very tight supplies that forced prices to record levels. While there's plenty of wheat on the world market, much of it is only feed grade, giving the U.S. a shot at a lot of business. Total sells of wheat were 23.9 million bushels, with both sales and shipments above the weekly rate forecast for the marketing year by USDA.
Soybean sales were the laggard this week, coming in at 6.2 million bushels. Export shipments remain very strong, however, hitting 22.3 million bushels.
|
Weekly Export Sales (million bushels) |
|
|
|
|
|
|
|
AS OF WEEK ENDING |
8/7/08 |
|
|
|
|
|
|
|
|
|
Actual |
Est. |
Last Week |
USDA F'cast |
Export Ship-ments |
USDA F'cast |
% of USDA Commit. |
Ave. |
% of USDA Ship-ments |
Ave. |
|
Wheat |
23.9 |
22.1 |
25.1 |
13.0 |
21.8 |
19.6 |
38% |
33% |
12% |
16% |
|
Corn |
52.6 |
37.4 |
41.6 |
(3.0) |
45.5 |
64.3 |
100% |
102% |
92% |
91% |
|
Soybeans |
6.2 |
14.7 |
22.8 |
(0.3) |
22.3 |
1.0 |
101% |
103% |
95% |
99% |
Source: USDA, Reuters