Low Prices Lure Corn Buyers
It appears USDA is on target with forecast for marketing year.
Bryce Knorr
Published: Apr 15, 2010
Low prices are convincing more foreign customers to load up on U.S. corn, with strong shipments also helping firm the basis along the export pipeline.
Sales in the latest week topped 45 million bushels, with actual shipments almost as strong. That continues to suggest USDA is on target with its forecast for the marketing year, despite a very slow start to the selling season.
Japan, South Korea and Mexico lead the list of buyers, though Taiwan isn’t buying much these days. Instead that normally regular customer has turned more to South American origins.
Soybean sales were also in line with trade estimates, though only a third of the total was for old crop. China took one load of 2009 beans, and booked almost all the new crop sales. Shipments are also remaining well above the rate forecast by USDA for the rest of the marketing year, suggesting the government may still be too low with its total.
Wheat sales came in at 15.1 million bushels, down from last week and trade estimates, with most of the buyers switching to new crop purchases. Shipments were decent at 16.6 million bushels, but below the rate needed every week for the rest of the marketing year to meet USDA’s improved forecast.
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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4/1/10
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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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15.1
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19.6
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19.3
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4.0
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16.6
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19.8
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91%
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93%
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78%
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80%
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Corn
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45.2
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51.1
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35.4
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21.0
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43.8
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39.1
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76%
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75%
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56%
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59%
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Soybeans
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16.6
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16.3
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14.7
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3.1
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16.2
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5.7
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95%
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93%
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89%
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85%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybeans, soybean
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