Low prices are supposed to stimulate demand, but old crop corn values last week apparently were not yet cheap enough to convince end users to step up to the plate. Net new bookings for corn reported this morning were the lowest since the Christmas holidays, just 11.9 million bushels, barely a third of what the trade expected.
USDA’s weekly export sales report measures totals through Thursday of the previous week, before the 40-cent break that took May futures to the $6 level yesterday. While volume was very heavy yesterday in the futures market, CIF basis at the Gulf actually weakened, with only small deals reported today out of Asia so far.
Corn shipments as expected were good at 43.9 million bushels, but the year-to-date pace remains slower than normal.
Traders are still waiting for confirmation of new deals to China. Today’s report included only a small purchase of 590,000 bushels.
New crop soybean sales were the bright spot of the weekly report, coming in at just over 31 million bushels thanks to good demand from China. New crop sales are running at a record pace for this time of year. Old crop shipments were also strong, doubling the rate needed to reach USDA’s forecast for the marketing year. Old crop purchases totaled just 13.75 million bushels, with China taking bare two new loads. But USDA separately today announced the sale of 4 million bushels of old crop to China, under its daily reporting system for large purchases.
USDA reports soybean meal exports were strong, topping 300,000 metric tons.
Total old and new crop sales of wheat came in at 16.3 million bushels, below trade guesses. New crop sales are running well behind the big totals of the last few years, with the total at the lowest point since the 2006-2007 marketing year.