cornseeds

Corn Export Sales Surge

USDA reports big business to "unknown destinations," believed to be China."

Today's Export Sales report released by USDA had a few technical glitches. But the data was squarely positive for corn, with net new bookings soaring to 58.7 million bushels in the latest week.

China was not listed as a big buyer – "unknown destinations" accounted for 9.9 million bushels of old crop business and 31 million bushels of new. But traders widely assume China is behind the deals, especially after USDA yesterday confirmed a big purchase by the world's largest country. That business will show up in next week's totals, which lag behind by a week.

Before the report wires bristled with ideas China has bought 200 million bushels since March, with a similar amount likely to be sought to rebuild supplies. China's livestock industry is on a tear, requiring imports despite what could be two straight years of record corn production.

 Weekly shipments of old crop were also good at 41 million bushels, though even more are needed to meet USDA's forecast for the marketing year. That could lead the agency to downgrade its forecast next week, when monthly supply and demand totals are updated.

Today's report was marred by early release of the data by at least one wire service. That raised more concerns about USDA's security, following earlier releases of data last week and from the recent Hogs and Pigs report.

Weekly totals for soybeans came in at 16 million bushels, a little below trade guesses. Most of the business was old crop purchased by China. However, shipments remain slow, just a third of the rate needed to be moved through August to meet USDA's current forecast for the 2010 crop.

Wheat sales of 15.6 million bushels were below trade guesses and the weekly rate forecast by the government for the marketing year. Most buyers are only taking a load, which could increase concerns about U.S. competitiveness following several big sales this week by Russia.

For the complete export report, click here.

Weekly Export Sales (million bushels)

AS OF WEEK ENDING

6/30/11

Actual

Last Week

Trade Est.

USDA F'cast

Export Ship-ments

USDA F'cast

% of USDA Commit.

Ave.

% of USDA Ship-ments

Ave.

Wheat

       15.6

    20.0

    20.2

     20.7

26.7

25.5

19%

23%

5%

7%

Corn

       58.7

    36.8

    43.3

     12.0

41.0

52.7

95%

96%

78%

82%

Soybeans

       16.0

      4.5

    18.4

       0.5

5.5

17.4

100%

100%

91%

92%

Source: USDA, Reuters

TAGS: USDA
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