May 16, 2008

US corn sales pick up, yet high prices still dampen demand

Total sales of US corn has picked up last week after declining to a marketing low the previous week; yet high prices still dampen overall demand, according to the USDA.

The USDA said on Thursday that corn sales in the week ended May 8 totalled 547,200 tonnes, up 62 percent from the previous week, but 14 percent below the prior four-week average.

The rising US dollar has contributed to the slowdown in demand, observers said.

Corn futures at the Chicago Board of Trade hit record highs above US$6 per bushel early this month, due, in part, to rains delaying the seeding of the crop.

May corn rose to US$6.21-3/4 per bushel, the highest for a spot month, on May 8.

Meanwhile, the USDA said wheat sales for both the old and new crops totaled 564,300 tonnes last week, with new-crop wheat sales totaling 443,600 tonnes.

Soy export sales were 201,400 tonnes, up nearly five times from last week's level, which was a marketing year low and the fourth straight week of declines.