Corn sales remain sluggish as the 2011 crop marketing year comes to an end, with USDA reporting net cancellations for the latest week.
Net new bookings of old crop declined in the latest week by 1.3 million bushels due to cancellations, while 2012 crop sales weren't anything to write home about, either, at just 6.6 million. The only bright spot for corn: China keeps taking control of old crop sales previously designated as bound for unknown destinations, picking up and shipping out another cargo in the latest week. Forecasts of Chinese production have started to edge lower, but could amount to a record crop.
Old crop soybean sales were also negative in total, but that was more than offset by a big round of new purchases for 2012 delivery that sent the total for the week to 26.5 million bushels, a little above trade guesses and last week's totals. China and unknown destinations traders assume to be mostly China dominated both sales and shipments, which were also goo at 19.7 million bushels. Total old crop shipments for the 2011 marketing year are 1.334 billion bushels, 16 million below USDA's forecast with one with left to go in the season.
New crop sales remain at record levels before the 2012 campaign begins. Some 645 million bushels are already booked, 58% of USDA's forecast for the entire year, as end users scramble to make sure they have supplies before the South American harvest arrives in six to eight months.
Wheat sales came in mostly as expected at 18.7 million bushels, up from last week but a little behind both trade guesses and the rate forecast by USDA for the rest of the marketing year. Sales continue to lag behind the government's forecast, but bulls hope slowing sales out of the Black Sea will turn business back across the Atlantic.
Buyers are beginning to step of the pace a little, with several customers taking multiple cargoes. Prices rallied this week on ideas end users are starting to get nervous.