US corn net export sales up 91% on week at 1.472 million mt: USDA

Houston — US net export sales of corn for the 2019-20 marketing year totaled 1.472 million mt in the week ended March 5, up 91% from the 769,205 mt in the previous week, Department of Agriculture data showed Thursday.

The total was down 53% from the prior four-week average, the USDA said in its Exports Sales Highlights report.

In addition to the exports sales for the 2019-20 marketing year, the USDA said 128,100 mt of US corn was sold for the 2020-21 marketing year.

Market expectations for net export sales were between 600,000 mt and 1.2 million mt for the current marketing year, and up to 100,000 mt for the next marketing year, sources said.

So far in the 2019-20 marketing year that began September 1, total commitments – cumulative exports plus outstanding sales – have reached 28.113 million mt, down 31% year on year and 27% below the five-year average. That total was up to 64% of the USDA's projection of 43.817 million mt of export sales for the current marketing year.

Outstanding export sales of US corn – product sold but not yet shipped – for the current marketing year totaled 12.881 million mt, 7% below the year-ago level and 23% below the five-year average, the USDA said.

The top buyers in the current marketing year include Mexico at 10.875 million mt, Japan at 5.891 million mt, Colombia at 2.655 million mt, South Korea at 871,200 mt and Guatemala at 858,474 mt, the data showed.

The top corn buyers in the most recent week for deliveries in 2019-20 include Japan with 750,458 mt, South Korea with 198,389 mt and Mexico with 163,767 mt.

Since the start of the marketing year, 2.060 million mt of US corn has been committed for unknown destinations, including this week's sales of 178,801 mt, USDA data showed.

Net sales are considered a more appropriate indicator of the strength of the corn market than physical exports, because they reflect new sales. The outstanding export sales are considered an indicator of the strength of the New Orleans CIF barge corn market.

Of the total estimated US corn production for 2019-20, 12.6% is projected to be exported, and US corn total exports are estimated to be 26.4% 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.