US corn export shipments up 45% on week at 2.24 million mt, a marketing year high
US weekly corn exports shipments for the 2020-21 marketing year (September-August) totaled 2.240 million mt in the week ended May 13, up 45% from 1.544 million mt in the previous week, according to US Department of Agriculture data released May 20.
The weekly export shipments for the 2020-21 marketing year were up 23% from the prior four-week average, and were a marketing-year high, the USDA said in its Export Sales Highlights report.
The main destinations were 1.010 million mt to China, 467,100 mt to Mexico, 310,900 mt to Japan, 113,000 mt to Colombia, and 111,200 mt to Israel.
Outstanding export sales of US corn — product sold, but not yet shipped — for the current marketing year totaled 20.734 million mt, 62% above the year-ago level and 53% above the five-year average, the USDA said.
China’s outstanding export sales for the current marketing year, or old crop, were at 10.082 million mt, 49% of the total outstanding sales for all destinations.
China has bought 22.828 million mt of US corn old crop, and just 12.746 million mt, or 56%, has been shipped at May 13. This without considering 1.910 million mt of US corn sold for exports to unknown destination, which market participants said that most of it will end in China.
US net export sales of corn for the 2020-21 marketing year (Old crop) totaled 277,573 mt in the week ended May 13, up 19% from the prior four-week average, the Export Sales Highlights report showed.
US net export sales of corn for the 2021-22 marketing year (New Crop) totaled 4.062 million mt in the week ended May 13, up 95% from 2.084 million mt in the previous week.
The data did not account for private exporter sales from May 14 to May 20 of 7.004 million mt, for delivery to China during the 2021-22 marketing year.
Market expectations for weekly net export sales were between minus 300,000 mt (cancelations) and 400,000 mt for the current marketing year and were between 3 million-4.5 million mt for the next marketing year (new crop), sources said.
So far in the 2020-21 marketing year that began Sept. 1, total commitments — cumulative exports plus outstanding sales — have reached 68.021 million mt, up 73% year on year and 46% above the five-year average, and 96.5% of the USDA total export sales estimate of 70.488 million mt on its last World Agricultural Supply and Demand Estimates report released May 12.
The outright price for S&P Global Platts corn CIF New Orleans in barges, for current-month shipment, dropped 67 cents week on week to $7.6975/bushel on May 13, following CBOT July corn futures 57.5 cents lower week on week to $6.7475/bu.
The top buyers in the current marketing year include China at 22.828 million mt, Mexico at 14.182 million mt, Japan at 9.884 million mt, Colombia at 3.664 million mt, and South Korea at 3.334 million mt, the data showed.
The top corn buyers in the most recent week for deliveries in 2020-21 include Mexico with 294,123 mt, Japan with 65,267 mt, and South Korea with 64,600 mt.
Since the start of the marketing year, 1.910 million mt of US corn has been committed for unknown destinations, including this week’s cancelations, or switch to know destinations, of previous export sales for 195,307 mt, USDA data showed.
The top corn buyers in the most recent week for deliveries in 2021-22, new crop, include China with 3.740 million mt, Mexico with 199,783 mt, Honduras with 62,738 mt, and Japan with 50,00 mt.
Net sales are considered a more appropriate indicator of the strength of the corn market than physical exports as they reflect new sales.
Outstanding export sales are considered an indicator of the strength of the New Orleans CIF barge corn market.
Of total estimated US corn production for 2020-21, 20% is projected to be exported, and US corn total exports are estimated to be 38% of the total corn exported in the world.
Corn is the primary feedstock for ethanol production in the US and the main competitor for dried distillers grains in feed rations.