What do end users around the world think about paying more for the 2013 corn crop? Not much, at least according to today's export sales report.
Traders didn't expect much in the way of old crop sales, with tight stocks rationing use in the sector. But new crop deals ran at a fairly brisk clip this spring, thanks to a big discount for 2013 crop supplies. However, buyers stepped back from the market together as December futures started to rally last week on concerns some acreage won't get planted. Net new crop sales totaled just 2 million bushels, all done by Mexico.
Combined with 4.2 million bushels of old crop business, total sales for the week were a disappointing 6.2 million bushels, just a fifth of trade guesses. The old crop deals, though small, were close to the rate for the rest of the marketing year forecast by USDA, which has sales its projection to an all-time low for the modern era.
Few old crop soybean sales were anticipated, after net cancellations last week. More sales were wiped off the books this week, but the total was still positive, if small, at 1.8 million bushels. Rationing is needed in the export sector to stretch U.S. supplies until the new crop harvest is available.
China continues to make large, regular purchases of new crop soybeans, many of which are announced separately under USDA's daily reporting system for big deals. Net sales of 2013 beans totaled 21.7 million bushels, well above trade guesses and keeping the pre-season total near record levels.
Wheat sales were expected to be scant for the last full week of the marketing year, which ended on Friday. Cancellations led the total to be negative, down 1.2 million bushels. A little white wheat was cancelled, but so were previous deals for hard red winter and spring wheat. New crop sales were good at 24.4 million bushels, with Mexico and Korea and unknown destinations taking multiple loads.