Corn export sales hit lowest level of the marketing year
Published on: April 12, 2024.
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Corn Export Sales Hit a Marketing Year Low
The week ending April 4th saw a significant decline in U.S. corn export sales, reaching a marketing year low. According to the USDA, this drop was due to a cancelation by unknown destinations. Although corn export demand has been strong, competition from Brazil and Ukraine, particularly in trade with China, has impacted sales. However, other agricultural products such as soybeans, wheat, soybean oil, and pork have shown improvements compared to the previous week. On the other hand, soybean meal, sorghum, rice, cotton, and beef have experienced a decline. Various factors including currency values, geopolitical issues, and seasonal changes influence the export trade.
Physical Shipments and Marketing Year
Physical shipments for corn, soybeans, and wheat have actually exceeded this year’s projections. The marketing year for wheat began on June 1st, for cotton and rice on August 1st, for corn, sorghum, and soybeans on September 1st, and for soybean products on October 1st. However, the marketing year for beef and pork follows the calendar year.
Wheat Exports
In terms of wheat exports, the week ending April 4th saw a solid increase to 80,700 tons (3 million bushels), a rise from the previous week but down 2% from the four-week average. Notably, the Philippines purchased 62,600 tons, and Algeria bought 19,000 tons, while some unknown destinations canceled orders. Wheat export numbers have reached 691.8 million bushels, an increase from last year’s 671.5 million bushels. Additionally, 274,400 tons (10.1 million bushels) have been sold for delivery in 2024/2025, primarily to Japan and South Korea.
Corn Exports
For corn exports, the week ending April 4th reported 325,500 tons (12.8 million bushels), a significant decline of 66% compared to the previous week and 72% below the four-week average. Despite this drop, Japan purchased 221,100 tons and Mexico bought 191,400 tons. However, unknown destinations canceled 261,700 tons. As of the halfway point of the marketing year, corn exports have reached 1.739 billion bushels, surpassing last year’s 1.486 billion bushels. Furthermore, 9,500 tons (400,000 bushels) have been sold for delivery in 2024/2025, primarily to Nicaragua and Honduras.
Sorghum, Rice, and Other Agricultural Products
Sorghum sales reached 5,200 tons (200,000 bushels), a 55% decline from the previous week and an 80% drop from the four-week average. China accounted for most of the purchases with 73,200 tons, but unknown destinations canceled on 68,000 tons. Rice sales also experienced a decline, reaching 48,000 tons, which is 57% lower than the previous week and 47% below the four-week average. Haiti and Panama were the main buyers of rice. Meanwhile, soybeans reported sales of 305,300 tons (11.2 million bushels), a 57% increase from the previous week. Mexico and Egypt were the top purchasers, while unknown destinations canceled on a significant amount. Soybean meal sales fell to 187,900 tons, a 7% decrease from the previous week, mainly due to purchases by Tunisia and Costa Rica. Lastly, soybean oil sales reached 4,300 tons, an increase from the previous week, with Mexico being the largest buyer.
Upland Cotton, Beef, and Pork
Upland cotton exports were reported at 81,500 bales, a slight decline from the previous week. China and Pakistan were the main buyers. In terms of beef exports, there was a total of 13,200 tons sold, mainly to South Korea, Japan, China, and Taiwan. As for pork exports, sales totaled 47,400 tons, with Mexico and South Korea being the top buyers.
Overall, the decline in corn export sales during the week ending April 4th indicates the challenges faced by the U.S. in a competitive international market. However, other agricultural products have shown improvements. It is important for exporters to navigate various factors affecting trade in order to maintain a strong position in the global market.
