July 22, 2011

US corn sales plummet after price surge

US corn export sales tumbled to a one-month low last week, falling 46% from the previous week, government data showed on Thursday (Jul 21), as buyers retreated after a weather-fueled rally in prices.

The USDA said sales of old and new-crop corn totaled 901,600 tonnes, at the low end of trade estimates for 900,000 to 1.4 million tonnes.

Chicago Board of Trade corn futures rose 10 % in the export sales reporting week ended July 14 as above-normal heat in the Midwest raised concerns over crop yields.

USDA data showed that corn sales for delivery to buyers in the current marketing year ending August 31 totaled 428,800 tonnes, and sales in the next year were 472,800 tonnes.

South Korea bought the most corn in both marketing years, totaling 176,100 tonnes. There was a sale of new-crop corn of 252,700 tonnes to unspecified buyers.

Soy sales totaling 445,900 tonnes for both old and new-crop supplies were the lowest in two weeks. Traders had expected 400,000 to 550,000.

China, the world's top importer of soy, bought 55,000 tonnes of old-crop supplies and 120,000 of new-crop soy - the smallest purchase in three weeks.

Sales of old and new-crop wheat totaled 403,500 tonnes, a seven-week low but within expectations for 300,000 to 500,000.