September 20, 2013

US corn net sales regained grip after reporting net sale reduction over the last several weeks, as shown in the USDA's weekly "US Export Sales report."

The report stated that corn net sales of 437,400 tonnes for 2013-14 resulted as increases for Mexico of 136,500 tonnes, including 33,300 tonnes switched from unknown destination and decreases of 5,000 tonnes, Japan with 108,500 tonnes, including 64,300 tonnes switched from unknown destinations and decreases of 10,500 tonnes, China with 64,500 tonnes, including 55,000 tonnes switched from unknown destinations, Peru at 40,000 tones, and Taiwan with 35,900 tonnes, were partially offset by decreases for unknown destinations 18,000 tonnes.

Exports of 518,800 tonnes were primarily to Mexico at 196,400 tonnes, Japan at 104,300 tonnes, Venezuela with 67,000 tonnes, China at 60,000 tonnes, and the Dominican Republic with 26,400 tonnes.

On Wednesday (Sep 11), news from the Federal Reserve boosted the commodity markets, and strength spilled over from the soy pit to support corn futures. Wednesday's Fed news continued supporting commodities overnight, with stocks and commodities surging on the news and continuing to rise overnight. December corn climbed US$0.0475 to US$4.61/bushel early Thursday (Sep 12) morning, and May rose US$0.0575 to US$4.8275.

Soy net sales also jumped after weeks of net sale reduction. The report showed soy net sales at 923,300 tonnes for 2013-14, which resulted as increases for unknown destinations 530,500 tonnes, China at 129,000 tonnes, South Korea with 85,200 tonnes, Mexico at 60,700 tonnes, and Indonesia with 41,000 tonnes. Exports of 74,200 tonnes were primarily to Mexico at 26,300 tonnes, Japan with 22,000 tonnes, Indonesia at 6,700 tonnes, Colombia at 4,400 tonnes, and Taiwan with 4,300 tonnes.

Soy rebounded from Tuesday (Sep 10) losses on Wednesday (Sep 11) as traders were greeted with news of a big US soy sale to China and another sizeable sale to an unknown buyer earlier in the day. Soy sustained their Wednesday advance into Thursday morning, though the soy complex was not immune to the Fed action and its impact upon the markets. November soy jumped US$0.1125 to US$13.59/bushel in early Thursday action, while October soyoil gained US$0.008 to US$0.4255/pound, and October soymeal ran up US$5.4 to US$432.4/tonne.