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Corn Exports Disappoint

More signs of rationing surfaced today with the latest export sales numbers. While net new bookings of just under 30 million bushels were up by half from the previous week, the total fell well shy of trade guesses. Moreover, shipments continue to lag the pace forecast by USDA for the rest of the marketing that closes at the end of the month.

China did buy a load of old crop corn this week, and took delivery on another. But Japan was just about the only customer to take significant quantities.

China continues to dominate the soybean trade, though its focus is squarely on new crop. A big cancellation by unknown destinations – likely China – lead to net old crop reductions for the week of almost 15 million bushels, offsetting almost half the new crop total of 40 million. China took virtually all the new crop total, and USDA this morning also announced the sale of another 6.25 million bushels under its daily reporting system for large purchases.

Wheat sales of 18.5 million were a little better than both last week and trade guesses, though shipments continue to lag the pace forecast by USDA for the marketing year. That report is likely to be overshadowed by the latest Egyptian snap tender, which spells more trouble for traditional exporters. Egypt took 6.6 million bushels of Russian wheat, but also bought 2.2 million from Romania, which was invited for the first time to submit offers.

 For the complete export report, click here.