July 9, 2011

US corn exports leap to 3-month high after price slump

US corn export sales surged to a three-month high last week, topping the high end of analyst estimates, as a record drop in corn futures spurred demand, USDA data showed on Friday (Jul 8).

Net sales of US corn, combined old- and new-crop, were 1.49 million tonnes for the week ended June 30, the largest sales since March, USDA said.

An unknown destination, thought by many traders to be China, was the biggest buyer, with a purchase of 783,000 tonnes of new-crop corn and 250,600 tonnes of corn for shipment by the end of the current marketing year on August 31.

Top world corn importer Japan accounted for 211,500 tonnes of corn, all for shipment by the end of the summer.

Benchmark corn futures fell as much as 12% last week at the Chicago Board of Trade, a record-large decline, after USDA unexpectedly raised its estimate for corn acreage.

Soy exports last week totalled 434,657 tonnes, the most sales since mid-April and within trader expectations, with 305,700 tonnes of those sales due for shipment by the end of the current marketing year.

China, which imports nearly two-thirds of global soy exports, booked 372,000 tonnes of old-crop soy. Japan, Guatemala, Colombia and an unknown destination all cancelled purchases of old-crop soy.

Wheat exports were 424,150 tonnes, lowest in a month and below trader estimates. Iraq was the largest buyer, with a purchase of 100,000 tonnes of hard red winter wheat, switched from an unknown destination.