US net export sales of corn for both old crop and new crop for the current and next marketing year totaled 250,844 mt in the week that ended August 29, down 70% from the previous week, US Department of Agriculture data showed Friday.
Of that total, 165,854 mt were canceled from previous sales for the current 2018-19 marketing year or the old crop, and 416,698 mt were for the next 2019-20 marketing year, or the new crop, the weekly data show.
Market expectations for the net export sales total were for somewhere between 500,000 mt and 900,000 mt, sources said. Expectations were for between zero and 100,000 mt for the 2018-19 marketing year, and between 5000,000 mt and 800,000 mt for the 2019-20 marketing year.
Since the 2018-19 marketing year began on September 1, 2018, total commitments - cumulative exports plus outstanding sales - totaled 49.935 million mt, down 18% year on year and 8.8% below the five-year average. The latest total was up to 94% of the USDA's recently updated 53.343 million mt projection for the 2018-19 marketing year.
USDA cut its export projection from 55.883 million mt on July 11 in its monthly World Agricultural Supply and Demand Estimates report. USDA cut its projections in every month between April, when it projected exports of 62.233 million mt, and July, before leaving it unchanged in August.
Outstanding export sales of US corn - product sold but not yet shipped - for the current marketing year through the most recent week totaled 1.011 million mt, 70% below the total at the same point last year and 79% below the five-year average, the USDA said.
The outright S&P Global Platts corn CIF New Orleans in barges price for front-month delivery dropped 2 cents to $3.9875/bu in the period of August 23-29, while CBOT front-month corn futures were unchanged at $3.595/bu.
Platts' corn CIF New Orleans on barges basis value for front-month delivery dropped 2 cents to 39 cents/bu in the same period.
The top buyers in the current marketing year have been Mexico at 15.753 million mt, Japan at 12.835 million mt, Colombia at 4.690 million mt and South Korea at 3.695 million mt, the USDA data show.
The top corn buyers in the most recent week for deliveries in the next marketing year were Mexico with 170,293 mt, Japan with 45,000 mt and Colombia with 30,000 mt.
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 barged corn market.
Corn is the primary feedstock for ethanol production in the US and is the main competitor for dried distillers grains.
