Corn Demand Increases After Six-week Slide

Corn exports and sales both increased for the first time since mid-April due to increased demand from Japan and Mexico. Soybean and wheat exports also increased this week. Corn sales were reported in the middle of the range of analyst expectations, while soybean sales declined from last week and were below analyst expectations. Wheat sales decreased from last week, but were on the high side of the expected range reported.

Rain in the southern plains has caused planting issues for soybean farmers and harvesting issues for wheat farmers. Tropical Storm Bill, which made land fall June 17th, is only making the problem worse by dumping more rain on the area. Soybean farmers in the area expect to prevent plant acres not planted by the end of the week, while wheat farmers hope the excessive rain does not ruin their crop.

Weekly net corn sales for the 2014/15 marketing year were 627,200 metric tons (MT), a 27% increase from last week, but a 5% decrease from the prior 10-week average. Increases were reported from Japan, Mexico, South Korea, Peru, and Spain. Decreases were reported from unknown destinations, Saudi Arabia, and China. Exports were 1,044,900 MT, a 26% increase from last week, but a less than 1% decrease from the prior 10-week average. The primary destinations were Mexico, Japan, Saudi Arabia, Peru, Taiwan, and South Korea.

Weekly net soybean sales for the 2014/15 marketing year were 132,900 MT, a 19% decrease from last week and a 45% decrease from the prior 10-week average. Increases were reported from Japan, Indonesia, the Netherlands, and Pakistan. Decreases were reported from unknown destinations, Costa Rica, and Vietnam. Exports were 353,900 MT, a 45% increase from last week and a 13% increase from the prior 10-week average. Primary destinations were Indonesia, the Netherlands, Mexico, China, and Japan.

Weekly net wheat sales for the 2015/16 marketing year were 315,700 MT, a 16% decrease from last week. Increases were reported from Japan, Mexico, Iraq, Brazil, and Italy. Decreases were reported from unknown destinations, and Nigeria. Exports were 284,500 MT, a 209% increase from last week. Primary destinations were Japan, Nigeria, Brazil, the Philippines, Mexico, and Panama.