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Corn Sales Surprise

Headlines in the corn market this week raised questions about demand, with the slow pace of shipments fueling worries high prices were rationing foreign buying.

While this morning's export sales tally indeed showed less corn moving out of the country, total new bookings were much stronger than expected ahead of this week's USDA report. The government reported total sales hit 46 million bushels, the best showing since March.

Japan and South Korea were big buyers in the most recent week, with Egypt, unknown destinations and Costa Rica taking multiple loads.

Soybean sales, by contrast, are still weak, with shipments also lagging due to big South American supplies still commanding China's attention. Net new bookings for the latest week totaled just 12.9 million bushels, while shipments were only 11.1 million, compared to the rate of 29.2 million forecast by USDA for the marketing year. China wasn't even the biggest buyer this week; that honor fell to Mexico, which took 46% of this week's sales.

Wheat sales and shipments also were a bit sluggish, with both falling below the rates forecast by USDA for the marketing year. Most buyers of the 15.2 million bushels of new sales took only single loads, with Chile leading the list of both sales and shipments. The U.S. faces stiff competition into North African and Middle Eastern markets; Morocco today said there were no bidders for a deal on U.S. wheat giving it a preferential import tariff.

For the complete export report, click here.