Export sales of old-crop U.S. corn jumped 52% this past week in USDA's weekly report, exceeding trade forecasts, with Japan, Mexico and South Korea the leading buyers, however new-crop business at 540,000 bushels fell short of estimates and pulled overall sales below the previous week's pace.
Soybeans had a net reduction of 600,000 bushels in old-crop sales, about as expected, as cancellations offset sales to Indonesia, Egypt, Canada and others. Unknown destinations, Mexico, China and Thailand cancelled sales. New-crop sales of 2.9 million bushels were well below trade estimates, as China, Japan and Indonesia led buyers.
Old-crop soymeal sales of 140,900 tonnes were down 24% from the prior week, but in line with trade estimates, with Venezuela, Mexico, and Bangladesh leading buyers.
"The numbers were positive for corn, both total sales and shipments," said Bryce Knorr, senior grain analyst for Farm Futures. "In fact, commitments now account for 99% of USDA's sales forecast for the entire marketing year, suggesting total bookings may wind up better than expected."
Demand from regular customers like Japan aggressively working U.S. corn back into feed rations is likely benefiting from uncertainty over shipments out of Ukraine, he said.
Grain and soy futures initially showed little reaction to the numbers, as corn, soybean and wheat futures remained lower after the report. Soybean futures later were down about 23 cents in old crop months.
A slowdown in soybean and soymeal exports had been expected as global buyers turn to South America, which is harvesting. However, year-to-date soybean export sales are already 4% more than USDA's latest forecast, while soymeal sales are nearly 91%.
Weekly old-crop wheat sales at 7.9 million bushels were down from the prior week but in line with expectations, with Philippines, Japan and Brazil leading buyers, while new-crop business at nearly 8.1 million was less than expected. New-crop sales were led by unknown destinations, Brazil and Mexico.