October 15, 2012

US corn export sales sharply decline last week

As near-record-high prices due to the worst US drought in a half century drove importers to buy feed grains elsewhere, US corn export sales dropped well short of expectations last week to just a fraction of the normal harvest-time pace.

Export sales of US wheat fell for a third consecutive week last week, according to weekly USDA data released on Friday (Oct 12), hitting a four-month low due to high US prices and stiff competition from rival suppliers.

Net soy sales slipped to a two-month low, largely due to reduced purchases by top importer China where markets were closed last week for a national holiday.

USDA pegged net corn sales in the week ended October 4 at just 4,200 tonnes for shipment in the current marketing year and 10,000 tonnes for the 2013-14 marketing year which begins September 1, 2013.

Net sales of all classes of US wheat totalled 279,900 tonnes, all for shipment in the 2012-13 season. Net soy sales were 523,700 tonnes, all but 23,000 tonnes of which were for current-marketing-year shipment.

Analysts polled ahead of the report had forecast corn sales at 300,000-400,000 tonnes, wheat sales at 350,000-550,000 tonnes and soy sales at 750,000-850,000 tonnes.