Exports: Corn dips, soybeans plunge

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According to the USDA’s latest U.S. Export Sales report, corn net sales of 114,400 metric tons (MT) for the 2012-2013 marketing year were down 56 percent from last week and 65 percent from the 4-week average.

 Increases reported for China (171,700 MT, including 180,000 MT switched from unknown destinations and decreases of 8,300 MT), Japan (70,700 MT, including 27,200 MT switched from unknown destinations and decreases of 3,200 MT), Saudi Arabia (66,300 MT, including 65,000 MT switched from unknown destinations), Venezuela (30,000 MT), Colombia (13,200 MT), and Mexico (12,400 MT), were partially offset by decreases for unknown destinations (272,200 MT). 

Net sales of 5,800 MT for delivery in the 2013/2014 marketing year were for Japan.  Exports of 433,400 MT were up 68 percent from the previous week and 32 percent for the prior 4-week average.  The primary destinations were China (171,700 MT), Japan (113,100 MT), Saudi Arabia (66,300 MT), Mexico (47,300 MT), Jamaica (20,100 MT), and Nicaragua (7,400 MT).

Optional Origin Sales:   For MY 2012/2013, outstanding optional origin sales total 213,200 MT, and are for South Korea (163,200 MT), Israel (20,000 MT), and Mexico (30,000 MT).

The recent decline in corn futures accelerated Wednesday after a Memphis-based consulting company boosted its estimate of next year’s corn plantings to 99 million acres, thereby implying a huge domestic crop if normal weather conditions hold next year. The resulting drop sparked a nearby futures test of chart support just above the psychologically important $7.00/bushel level.  On Thursday March corn looks set to begin the pit session 5 1/4 cents lower at to $6.97 ¼ per bushel, while the December 2013 contract fell 3 cents to $6.10 1/2.

REPORT THIS WEEK LAST WEEK DIFFERENCE
  Sales 114,382 258,900 -144,518
 
SALES 10 WEEKS 27 WEEKS THIS YEAR
Average 216,919 228,255 387,244
High 769,756 1,881,967 1,881,967
Low 51,611 368 -104,157
 
 
Chart

The report also showed that soybean net sales of 619,400 MT for the 2012/2013 marketing year down 53 percent from last week and 23 percent from the 4-week average.  Increases reported for China (474,200 MT, including 168,000 MT switched from unknown destinations and decreases of 224,600 MT), South Korea (95,300 MT, including 55,000 MT switched from unknown destinations), Turkey (68,600 MT, including 63,000 MT switched from unknown destinations), Saudi Arabia (66,000 MT), and Indonesia (61,300 MT), were partially offset by decreases for unknown destinations (320,000 MT).  Net sales of 10,500 MT for delivery in the 2013/2014 marketing year were for Japan.  Exports of 1,348,800 MT were up 16 percent from the previous week, but down 9 percent from the prior 4-week average.  The primary destinations were China (945,600 MT), South Korea (85,600 MT), Turkey (68,600 MT), Saudi Arabia (66,000 MT), and Japan (54,800 MT).

Exports for Own Account:  New exports for own account totaling 28,800 MT were reported for Canada.  The current exports for own account balance is 38,300 MT, all Canada.

Having China cancel previously contracted purchases of 300,000 tones of soybeans Tuesday morning obviously did a number on CBOT soybean prices later that day and again on Wednesday despite news that a Memphis-based consulting company had lowered its forecast of 2013 U.S. soybean acreage by about 1.1 million acres. CBOT traders seemingly concentrated on the fact that the private forecast would still set a record for domestic soy plantings. The market kept sliding in Thursday morning electronic trading, thereby raising the possibility that January futures will soon test the $14.00/bushel area.

REPORT THIS WEEK LAST WEEK DIFFERENCE
  Sales 619,448 1,319,448 -700,000
 
SALES 10 WEEKS 27 WEEKS THIS YEAR
Average 647,714 557,023 548,369
High 1,319,448 2,645,023 2,645,023
Low 186,439 5,146 -10,087
 
 
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