April 5, 2013

US corn net sales up 20% in 2012-13 marketing year

US corn net sales of 354,300 tonnes were reported for the 2012-13 marketing year, up 20% from last week and up noticeably from the four-week average.

This is according to the USDA's latest US Export Sales report.

Increases reported for Japan at 202,400 tonnes, including 141,600 tonnes switched from unknown destinations and decreases of 8,500 tonnes, Mexico at 163,200 tonnes, China at 109,000 tonnes, including 120,000 tonnes switched from unknown destinations and decreases of 11,000 tonnes, Venezuela with 52,000 tonnes, Guatemala with 15,900 tonnes, including 12,500 tonnes switched from unknown destinations, and Taiwan at 15,600 tonnes, were partially offset by decreases for unknown destinations of 231,200 tonnes.

Net sales of 33,000 tonnes for the 2013-14 marketing year were for Mexico.  Exports of 565,900 tonnes were up 47% from the previous week and 43% from the prior four-week average. The primary destinations were Japan at 216,700 tonnes, China at 109,000 tonnes, Mexico at 104,100 tonnes, Venezuela at 55,000 tonnes, and Taiwan at 20,300 tonnes.

Corn futures held up well despite big losses in the financial, energy and metal markets, with modest gains reported despite increase production estimates for China, Brazil and Argentina. Futures declined early Thursday morning as news that a large corn tender from a South Korean firm will be sourced from South America, thereby suggesting US corn remains uncompetitive on the international market. May corn slipped US$0.02 to US$6.395/bushel in early morning action, while December dipped US$0.005 to US$5.39.

The report also showed that soy net sales of 392,700 tonnes for the 2012-13 marketing year were up noticeably from last week and up 37% from the four-week average.

Increases were reported for China with 138,400 tonnes, Mexico - 132,200 tonnes, Germany - 54,400 tonnes, unknown destinations of 19,700 tonnes, and Japan with 13,400 tonnes, including 9,000 tonnes switched from unknown destination. Net sales of 355,100 tonnes for delivery in the 2013-14 marketing year were primarily for China at 354,000 tonnes.

Exports of 473,600 tonnes were down 17% from the previous week and 27% from the prior four-week average. The primary destinations were China at 260,500 tonnes, Mexico - 64,400 tonnes, Germany - 54,400 tonnes, Indonesia - 30,100 tonnes, Japan - 29,500 tonnes, Taiwan - 23,500 tonnes, and Vietnam - 8,600 tonnes.