With supplies of corn established after last week's USDA report, demand is now the key to rallies. A drop in ethanol production and China's rejection of shipments with a non-approved GMO trait set the market back earlier this week. Prices firmed after USDA reported a strong week of export business for corn, but face a challenge on the pit open from news of more cancellations.
Net new bookings in the week ended Jan. 9 totaled 32.3 million bushels, according to the tally released this morning. Egypt was the leading buyer, taking 6.5 million bushels of the total, with Japan and Mexico taking multiple loads. USDA confirmed decreases for China of 6.7 million bushels in the latest week, along with adjustments to reports released last fall.
Still, total sales and shipments are running well ahead of the pace forecast by USDA for the marketing year, though the total for China is running lower than original expectations. The government today announced another 5 million bushels were cancelled to unknown destinations, news from the system for daily confirmation of large deals that broke after the weekly report came out.
Corn futures firmed after the 7:30 report came out but bids were a penny or so lower after the cancellations came out. The market reopens for pit trade at 8:30.
Soybean business remains brisk, with total old and new crop sales topping 45 million bushels. China continues to dominate both sales and the big shipments as well, though a few decreases were also noted in their account. Still, both sales and shipments are running at a record pace, easily beating USDA's forecast pace for the marketing year even after that was raised in last week's month supply and demand report.
Wheat sales remain thin, however, just 11.8 million bushels for old crop and 3 million new. Spring wheat accounted for the most sales, benefiting from problems in Canada shipping out their record crop. Traders were waiting for results of the latest snap tender from Egypt, after a U.S. offer won the most recent business last week.