Corn Sales Reach Marketing Year High
Big China purchase and other action push sales higher.
Bryce Knorr
Published: May 6, 2010
A long tally sheet of corn sales, capped by the first purchases by China in four years, propelled total new bookings for the latest week to a marketing year high – 74.1 million bushels.
While the weekly report released today uncovered no new sales to China, another four cargoes, 9.5 million bushels, were listed to “unknown destinations,” keeping the rumor mill alive. Prices in China rose steadily this year after a sub-par 2009 crop, causing the government there to sell off part of its massive reserves. Still, processors are finding it cheaper to import corn from the U.S., if the purchases can get appropriate licenses. Traders are also voicing some concerns about planting delays due to wet weather in part of the country’s prime growing region.
The strong weekly total should at the least lend support to a market that’s trying to keep from sliding under the weight of record fast planting this spring.
Japan led the list of buyers, taking 26.5 million bushels. South Korea, Taiwan, Mexico, Egypt and Columbia also all took two or more cargoes.
While shipments remain a little behind the pace forecast by USDA, total commitments are well ahead. That could even lead the agency to increase its forecast for total demand for old crop in next week’s monthly supply and demand report.
Soybean sales this week also featured business to China, with the world’s largest soy importer taking 63% of the 10.4 million bushels of old crop sales, in addition to almost as much new crop. However, the total new bookings for the week, 18.1 million bushels, was well below aggressive trade estimates.
Wheat sales also failed to live up to modest expectations, coming in at the low end of trade guesses at 10.4 million bushels. Buyers from Asia and Americans continue to be active, but amounts are small so far.
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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4/29/10
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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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10.4
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17.2
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11.9
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11.2
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10.3
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31.0
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94%
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96%
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84%
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85%
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Corn
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74.1
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56.3
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40.4
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17.2
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36.0
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39.6
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86%
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80%
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62%
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64%
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Soybeans
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18.1
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29.1
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33.1
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1.5
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10.2
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4.7
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95%
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96%
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90%
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88%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybeans, soybean
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