June 27, 2008

Shipments of US corn decline as record prices discourage buyers

Exports of US corn fell to a marketing low last week as towering prices caused by Midwest flooding drove buyers away.

The USDA reported Thursday (June 26, 2008) that corn export sales for delivery in the current marketing year ending August 31 totalled 231,300 tonnes, down 33 percent from the previous week and 51 percent below the four-week average.

Japan was the top buyer with 98,500 tonnes, while Mexico was second with 52,900 tonnes.

CBOT corn futures have been surging in the past two weeks due to what observers consider as the worst flood to hit the US Corn Belt in 15 years.

The American Farm Bureau Federation said on Wednesday (June 25, 2008) that Iowa alone could suffer US$4 billion in crop losses.

Grains analyst Shawn McCambridge of Prudential Financial said that export sales of corn were a bit disappointing.

High prices, however, did not dampen China's demand for soy to be shipped in the next marketing year that begins September 1.

USDA reported that new-crop soy export sales last week totalled 2.3 million tonnes, nearly all of it bought by China.

Also last week, US wheat exports totalled 498,400 tonnes, down 7 percent from the previous week. Japan was top buyer with 222,900 tonnes, while Mexico imported 109,000 tonnes.