Exports: Corn, soybeans tumble

According to the USDA’s latest U.S. Export Sales report, corn net sales of 138,500 metric tons (MT) for the 2012-2013 marketing year resulted as increases for China (163,500 MT, including 180,000 MT switched from unknown destinations and decreases of 16,500 MT), Japan (98,500 MT, including 52,000 MT switched from unknown destinations and decreases of 3,100 MT), Mexico (48,300 MT), Honduras (11,000 MT, including 9,800 MT switched from El Salvador and decreases of 800 MT), and Taiwan (10,200 MT), were partially offset by decreases for unknown destinations (180,100 MT), El Salvador (9,800 MT), and Colombia (4,700 MT). 

Net sales of 51,300 MT for the 2013/2014 marketing year were reported for Mexico (52,000 MT).  Decreases were reported for Japan (700 MT).  Exports of 369,500 MT were up 50 percent from the previous week and 75 percent from the prior 4-week average. 

The primary destinations were China (163,500 MT), Japan (110,300 MT), Mexico (46,800 MT), and Honduras (15,400 MT).

Optional Origin Sales:   For MY 2012/2013, optional origin sales totaling 20,000 MT for Israel were exercised to export from other than the United States.   Outstanding optional origin sales total 117,900 MT, all South Korea.  For MY 2013/2014, outstanding optional origin sales total 30,000 MT, all Mexico.

Improved South American weather forecasts undercut the U.S. grain complexes on both Wednesday and Thursday.  These forecasts also impacted Friday’s markets prior to the Export Report’s release.  March corn slipped 1/4 cent to $7.24/bushel in early-morning action, whereas December rose 1 cent to $5.86 1/2.

The report also showed that soybean net sales  of 383,300 MT for the 2012/2013 marketing year were for China (209,600 MT, including 163,000 MT switched from unknown destinations and decreases of 4,500 MT), the Netherlands (194,600 MT, including 140,000 MT switched from unknown destinations and 60,000 MT switched from China, and decreases of 17,400 MT), Mexico (77,000 MT), Germany (66,900 MT), Spain (55,900 MT, switched from the United Kingdom), and South Korea (54,300 MT, including 55,000 MT switched from unknown destinations and decreases of 700 MT). 

Decreases were reported for unknown destinations (374,000 MT) and the United Kingdom (60,000 MT).  Net sales of 595,000 MT for delivery in the 2013/2014 marketing year were for China (355,000 MT) and unknown destinations (240,000 MT).

 Exports of 1,272,100 MT were up 5 percent from the previous week and 14 percent from the prior 4-week average.  The primary destinations were China (679,800 MT), the Netherlands (194,600 MT), Thailand (76,800 MT), Japan (71,100 MT), and Germany (66,900 MT).  Accumulated exports were adjusted down for the Netherlands (66,900 MT).

Optional Origin Sales:   For MY 2012/2013, optional origin sales decreases totaling 126,000 MT were reported for China.  For MY 2013/2014, optional origin sales totaling 246,000 MT were reported for China.  Optional origin sales totaling 120,000 MT for China were exercised to export from the United States.  Outstanding optional origin sales total 246,000 MT, all China.

The improved weather forecasts for major South American corn and soybean growing regions also impacted the soybean market on Thursday, weighing heavily on CBOT future early Thursday. However, the market posted a strong comeback before the afternoon close.  On Friday news that U.S. exporters sold more than 500,000 tons of soybeans to be delivered to China in the 2013-14 crop year seemed to offer belated support.  March soybeans had declined 3 1/4 cents to $14.32/bushel in the early-morning hours, while March soybean oil slid 0.21 cents to 51.90 cents/pound and March meal slipped $1.0 to $413.7/ton.

REPORT	THIS WEEK	LAST WEEK	DIFFERENCE
Sales	383,278	1,608,774	-1,225,496

SALES	10 WEEKS	27 WEEKS	THIS YEAR
Average	678,001	614,790	771,285
High	1,608,774	2,645,023	1,608,774
Low	86,976	5,146	321,803

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