US weekly corn net export sales up 23% on week, above market expectations

02.02.2018

US net export sales of current and next crop corn totaled 1.882 million mt in the week that ended January 25, up 23% from 1.531 million mt in the previous week, Department of Agriculture data showed Thursday.

Market expectations were for USDA total weekly export sales to be between 1.200 million mt and 1.700 million mt, a source said.

Of the total net exports sales, 1.851 million mt were for the current corn crop, and 30,988 mt were for the next corn crop, the agency said. Since the current marketing year began on September 1, total commitments -- cumulative exports plus outstanding sales -- totaled 32.252 million mt, down 20% year on year and 14.6% above the five-year average.

The current total is already 66% of the USDA's 48.898 million mt projection for the current marketing year.

Outstanding export sales of US corn -- product sold but not yet shipped -- for the current marketing year through the most recent week totaled 18.441 million mt, 10% below the same period last year and 26.8% above the average for the past five years, the USDA said.

The top corn buyers in the most recent week were Mexico with 315,949 mt, Japan with 290,942 mt and Colombia with 197,672 mt. In addition, 484,919 mt were sold to unknown destinations.

The top buyers in the current marketing year are Mexico at 10.254 million mt, Japan at 5.348 million mt, Colombia at 2.370 million mt and Peru at 1.851 million mt, the data show.

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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