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US net export corn sales down 62% on week to 382,534 mt, far below market expectations

https://www.chemnet.com   Oct 19,2018 S&P Global Platts
US net export sales of corn for the current marketing year totaled 382,534 mt in the week ended October 11, down 62% from the previous week, US Department of Agriculture data showed Thursday.

Market expectations were for total weekly export sales between 800,000 mt and 1.3 million mt.
"I think the poor export numbers were due to importers sitting back and waiting for the expected bearish USDA report," a market participant said, referring to the US Department Agriculture's, World Agricultural Supply and Demand Estimates report issued October 11, which was less bearish than expected.

Since the 2018-2019 marketing year began September 1, total commitments -- cumulative exports plus outstanding sales -- have risen to 21.088 million mt, up 41% year on year and 28% above the five-year average.

The total was up to 33.5% of the USDA's 62.868 million mt projection for the 2018-2019 marketing year.

Outstanding export sales of US corn -- product sold but not yet shipped -- for the current marketing year through the most recent week totaled 13.811 million mt, 27% above the total at the same point last year and 15.8% above the five-year average, the USDA said.

The top corn buyers in the most recent week were Mexico with 162,457 mt, Colombia with 132,962 mt, Japan with 119,553 mt and Guatemala with 73,251 mt.

Previous sales for current marketing year of 326,514 mt for unknown destinations were canceled during the reported week, the USDA said.

The top buyers in the current marketing year have been Mexico at 6.625 million mt, Japan at 3.327 million mt and South Korea at 1.945 million mt, the data showed.

Since the beginning of the marketing year, 2.405 million mt of US corn has been committed for unknown destinations, 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 in barges corn market.

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