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Corn Exports Strong For Third Week

Heavy buying from Mexico, hit recently by a hard freeze, helped push U.S. corn exports to a strong total for a third consecutive week. The weekly total, 46 million bushels, edged total commitments closer to the rate forecast by USDA, though actual shipments remain relative slow.

While Mexican farmers have begun replanting acres lost to the frost, the government could have the marketing muscle to keep up with rising futures in the U.S. It's been a heavy buyer of call options used to protect citizens from rising food costs. Mexico bought 25.2 million bushels in the latest week, in addition to more purchases this week.

Japan as usual was a good buyer as well, taking 8.1 million bushels, with USDA announcing the sale of 4 million more today under its separate daily reporting system for large purchases.

Wheat sales also increased in the latest week, with the total of 26.7 well above expectations. Buyers from Asia and Africa were prominent, with Japan and Nigeria leading the list of customers. The only negative in the report were net cancellations for sales of soft red winter wheat, which remain slow, with hard red winter wheat still strong.

Soybean sales were surprising, on a couple of levels. Old crop sales, which have been dwindling under the force of cancellations, came in at 18.9 million bushels. But there were actually cancellations of new crop business, which until lately has been strong.

USDA also announced China had cancelled another 4.4 million bushels of old crop business today under its daily reporting system.

For the complete export report, click here.