US corn net export sales jump 92% on week at 1.438 million mt, above market expectations
US net export sales of corn for the 2020-21 marketing year (September-August) totaled 1.438 million mt in the week ended Jan. 7, up 92% from the 748,910 mt in the previous week, according to Department of Agriculture data released Jan 14.
The net export sales for the 2020-21 marketing year were up 34% from the prior four-week average, the USDA said in its Exports Sales Highlights report.
Market expectations for net export sales were between 700,000 mt and 1.2 million mt for the current marketing year, sources said.
US export sales were above the average weekly pace needed to reach the USDA estimate of exports in the 2020-21 marketing year, a market participant said.
So far in the 2012-21 marketing year that began September 1, total commitments — cumulative exports plus outstanding sales — have reached 45.382 million mt, up 135% year on year and 67% above the five-year average
Outstanding export sales of US corn — product sold, but not yet shipped — for the current marketing year totaled 28.662 million mt, 190% above the year-ago level and 108% above the five-year average, the USDA said.
The outright price for S&P Global Platts corn CIF New Orleans in barges, for current-month shipment, rose 13 cents week on week to $5.76/bushel on Jan. 7, following CBOT March corn futures10 cents higher week on week to $4.94/bu.
The S&P Global Platts corn CIF New Orleans basis in barges, for current-month shipment, was 3 cents higher week on week at 82 cents/bu above the CBOT March (H) contract.
The top buyers in the current marketing year include China at 11.769 million mt, Mexico at 9.947 million mt, Japan at 5.926 million mt, Colombia at 2.183 million mt, and South Korea at 1.063 million mt, the data showed.
The top corn buyers in the most recent week for deliveries in 2012-21 include Japan with 401,513 mt, Colombia with 125,920 mt, Mexico with 124,089, and China with 88,530 mt.
Since the start of the marketing year, 7.923 million mt of US corn has been committed for unknown destinations, including this week’s export sales of 334,488 mt, USDA data showed.
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, 18% is projected to be exported, and US corn total exports are estimated to be 35% 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.