China Sales Snub Dampens Corn Exports
New business dips to marketing year low.
Bryce Knorr
Published: Jun 4, 2010
Hopes for strong summer corn export demand ran into a brick wall Friday, when USDA released the latest sales tally. China made no new purchases of old or new crop corn, resulting in new business dipping to a marketing year low.
The total of old and new crop business sank to just 12.3 million bushels. The 7.8 million bushels of 2009 corn – most of which went to Japan – added to only two loads of new crop business, as good crop conditions convinced buyers to wait for lower prices.
Today’s export numbers weren’t a total shocker: There were no sales reported under USDA’s daily listings for larger purchases. Still, the sparse total put a damper on ideas of a growing demand from foreign customers. Export shipments were very good at 48.3 million bushels, as buyers loaded out previous purchases.
Sales of soybeans and wheat were also seasonally tepid in the latest week before Memorial Day. Cancellations of old crop wheat lead to a reduction in net 2009 crop sales as the marketing year neared its end, offset by better new crop business. Buyers came mostly from the Americas, who continue to take only small amounts as end users buy hand-to-mouth with scale down purchases.
Soybean sales totaled only 5.4 million bushels, not surprising as demand shifts to a record South American crop. However, new crop business was limited, with China out of the market in the latest week.
For the complete export report, click here.
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Weekly Export Sales (million bushels)
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AS OF WEEK ENDING
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5/27/10
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Actual
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Last Week
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Trade Est.
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USDA F'cast
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Export Ship-ments
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USDA F'cast
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% of USDA Commit.
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Ave.
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% of USDA Ship-ments
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Ave.
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Wheat
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12.8
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17.8
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NA
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NA
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11.1
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NA
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96%
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96%
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90%
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90%
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Corn
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12.3
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33.7
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NA
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13.0
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48.3
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41.5
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91%
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87%
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70%
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72%
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Soybeans
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5.4
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10.9
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NA
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0.1
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5.5
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3.2
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97%
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98%
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92%
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92%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybeans, soybean
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