May 9, 2008

 

US corn sales tumble on rising dollar

 

 

The total corn shipments of the US dropped by 39 percent on-week, as the US dollar rose against major currencies, the USDA reported on Thursday.

 

US corn sales in the week ended May 1 totaled 337,200 tonnes, down from the previous week.

 

The total was 50 percent below the four-week average, and the lowest in the marketing year ending August 31.

 

The US dollar climbed to a near two-month high against the yen and a one-month high against major currencies in the week of the export sales, driven by speculation that the Federal Reserve may stop cutting interest rates.

 

Corn futures at the Chicago Board of Trade hit record highs on Thursday amid growing concerns over corn planting delays in the US caused by heavy rain.

 

May corn rose to US$6.19-1/4 per bushel, the highest for a spot month. The July 2009 contract increased to US$6.72-1/4, the all-time high for any contract month.

 

A trader said corn export demand had slowed partly due to a portion of Europe's large wheat crop may be used as livestock feed.

 

Meanwhile, soy sales also plummeted by 87 percent from the previous week at only 41,000 tonnes.

 

Observers said it was the fourth straight week of declines for soy trade, as there have been no shipments to China.

 

Analysts said the US soy exports are usually slow this time of year as the harvest in Brazil and Argentina provides a glut of supplies typically cheaper than supplies from the US.