May 10, 2013
US corn net sales drop by 65%
US corn net sales reached 115,800 tonnes for 2012-13, down 65% from last week and 62% from the four-week average.
According to the USDA''s latest US Export Sales report, increases reported for Japan (89,900 tonnes, including 31, 000 tonnes switched from unknown destinations), Venezuela (73,000 tonnes, including 27,500 tonnes switched from unknown destinations), Mexico (22,900 tonnes), Costa Rica (9,100 tonnes, including 7,800 tonnes switched from unknown destinations), Canada (3,800 tonnes), and Honduras (2,500 tonnes), were partially offset by decreases for Colombia (60,000 tonnes) and unknown destinations (26,400 tonnes).
Net sales of 169,900 tonnes for 2013-14 were for China (75,000 tonnes), Saudi Arabia (62,000 tonnes), Japan (24,700 tonnes), and Jamaica (8,300 tonnes). Exports of 192,100 tonnes were down 52% from the previous week and 41% from the prior four-week average.
The primary destinations were Mexico (83,200 tonnes), Japan (54,100 tonnes), Venezuela (30,000 tonnes), Costa Rica (9,100 tonnes), and Taiwan (7,700 tonnes).
Despite being supported by the financial market situation as equities rose from record highs and the weakening dollars on Wednesday (May 8), corn futures declined. The looming release of upcoming USDA reports limited futures price movements overnight. July corn inched US$0.005 lower to US$6.325/bushel early Thursday morning, while December slipped US$0.01 to US$5.31. Corn trading will probably be dominated by weather conditions, planting progress and the tight old crop situation throughout Thursday.
The report also showed that soy net sales of 193,800 tonnes for 2012-13 resulted as increases for Mexico (84,400 tonnes), Indonesia (50,200 tonnes), Japan (26,300 tonnes), Malaysia (24,000 tonnes, switched from unknown destinations), and China (6,100 tonnes), were partially offset by decreases for unknown destinations (15,000 tonnes).
Net sales of 391,700 tonnes for 2013-14 were primarily for China (360,000 tonnes) and unknown destinations (20,000 tonnes). Exports of 171,800 tonnes were down 52% from the previous week and 49% from the prior four-week average.
The primary destinations were China (66,600 tonnes), Japan (31,300 tonnes), Malaysia (24,200 tonnes), Indonesia (15,100 tonnes), Taiwan (12,400 tonnes), and Mexico (10,800 tonnes).
Tight supplies and firm prices continued supporting nearby soy futures Wednesday morning; bulls also got a boost from a USDA report of an 115,000-tonne sale to China for the 2013-14 crop year. On Thursday the difficult old crop situation supported nearby soy futures. The soy complex rose modestly in early Thursday morning trading. July soy futures rose US$0.03 to US$13.935/bushel overnight, while July soyoil added US$0.001 to US$0.49/pound, and July soymeal climbed US$0.8 to US$408.4/tonne.