US corn net export sales down 81% on week, but beat expectations

Houston — US corn net export sales fell 81% in the week ended Feb. 4 to 1.449 million mt following a record high the previous week, US Department of Agriculture data showed on Feb. 11.

However, this was higher than market expectations by 49,000 mt. A mix of destination countries fueled the net sales during the week.

Japan accounted for the highest purchases with 517,700 mt, followed by Mexico with 456,400 mt and Egypt at 119,500 mt. China only bought 15,587 mt during the week, compared to 5.86 million mt during the record week ended Jan. 28.

Low Chinese demand came after a record buying spree the previous week and the onset of the Lunar New Year holidays. The entire week is given as holiday in China for the celebrations.

Weekly export shipments, on the other hand, rose 57% on the week to hit a marketing-year high of 1.566 million mt. China was the largest destination with 357,600 mt, followed by Japan at 314,000 mt and Mexico at 288,000 mt.

Total commitments, which are outstanding sales plus accumulated exports, increased 2.6% on the week to 57.555 million mt. This was spurred by the increased shipments that week; accumulated exports rose 7.8% on the week to 21.58 million mt.

The CIF New Orleans basis in barges for the current month shipment rose marginally to 75 cents/bu on Feb. 4 from 72 cents/bu the previous week. The price has been between 72 cents/bu and 78 cents/bu since Jan. 13.

The outright price for CIF New Orleans in barges rose 2.97% on the week to $6.25/bu on Feb. 4. The CBOT corn futures March (H) rose 1.48% on the week to settle at $5.485/bu.

Unknown net sales declined 127,071 mt for the week, representing a reduction of export sales to destinations not yet specified. The USDA reported a cancellation of an export sale for 132,000 mt on Feb. 10 for delivery to unknown destinations.

Corn is the primary feedstock for ethanol production in the US and the main competitor for dried distillers grains in feed rations.