US weekly corn net export sales down 30% on week, within market expectations

03.11.2017

US net export sales of current and next crop corn totaled 901,417 mt in the week ended October 26, down 30% from 1.288 million mt in the previous week, Department of Agriculture data showed Thursday.

Market expectations were for USDA total weekly export sales at between 800,000 mt and 1.1 million mt, a source said.

Net export corn sales for the current marketing year were at 811,417 mt, while net export corn sales for the coming marketing year were at 90,000 mt, the USDA said in its weekly export report.

The data did not account for private exporters' sales of 1.356 million mt of corn for delivery to Mexico. From the total, 845,820 mt were for delivery during the current marketing year and 510,540 mt for delivery during the next marketing year.

The export sales were published by the USDA in a separate report Thursday.

Since the current marketing year began September 1, total commitments -- cumulative exports plus outstanding sales -- equal 17.029 million mt, down 31% year on year and 3.13% below the five-year average.

The current total is already 36.2% of the USDA's 46.992 million mt projection for the current marketing year.

The export sales pace is running above the USDA forecast for the current marketing year, sources said.

Outstanding export sales of US corn -- product sold but not yet shipped -- for the current marketing year through the most recent week totaled 11.789 million mt, 26% below the same period last year and just 0.85% below the average for the past five years, the USDA said.

The top corn buyers in the most recent week were Japan with 222,704 mt, Spain with 198,000 mt and Mexico with 151,772 mt (61,772 mt for current crop and 90,000 mt for next crop).

The top buyers in the current marketing year are Mexico at 7.178 million mt, Japan at 2.280 million mt, Colombia at 1.136 million mt and Peru at 1.003 million mt, the data showed.

Net sales are considered a more appropriate indicator of the strength of the corn market than physical exports because they reflect new sales.

Corn is the primary feedstock for ethanol production in the US and is the main competitor for dried distillers grains.


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