US grain export sales slow along seasonal lines

US export sales for corn, soybeans, and wheat were all lower by 44pc or more the week ending 26 December, according to US Department of Agriculture (USDA) data, as trading activity was limited by the holiday break.

US corn export sales were the most active over the week as total export commitments rose by 780,000t. Gross sales to Mexico reached 220,000t, bring total export commitments to the country to 15.2mn t, up 9pc from the prior year. Gross sales to undeclared countries reached 200,000t over the week, but total commitments to undeclared countries fell as a combined 260,000t of previously undeclared sales were attributed to Mexico, Japan, South Korea, and Columbia.

Gross export sales of US soybeans reached 630,000t the week ending 26 December, bringing total US export commitments to 40.2mn t, or 11pc ahead of the prior year. Export sales were boosted by China, which purchased 300,000t over the week.

In addition to new sales, 320,000t of previously undeclared soybean sales were attributed to China over the week, bringing total export commitments to the country to nearly 18.9mn t, down by 4pc from the prior year.

While total soybean export commitments gained by 620,000t over the week, outstanding sales for export fell by 130,000t as the pace of sales being exported has remained very strong. Through 26 December of the US soybean marketing year, US soybean exports to China reached 16.1mn t, up by 12pc from the prior year.

US wheat export sales saw the largest decline the week ending 26 December, down by 70pc from the prior week to 210,000t. This marks the lowest weekly export sales volume since May 2009. The largest purchases were made by Mexico and South Korea, which purchased 40,000t each, followed by Honduras and Thailand which purchased 30,000t each.

While Mexico has remained the largest purchaser of US wheat since the start of the June-May marketing year, total export commitments to the country fell by 20,000t over the week as 60,000t of outstanding sales to the country were canceled. In total, 1.2mn t of US wheat sales to Mexico remain to be shipped, 38pc of US export comments to the country, or the largest share of export sales in more than ten years. Outstanding sales of wheat to Mexico accounted for 24pc of all US outstanding wheat sales, which reached 5mn t the week ending 26 December.

Although Mexico remained the largest purchaser of US wheat, with an unusually large balance of wheat unshipped in the US, it is unlikely future cancellations would have a substantial impact on the overall US wheat market outlook. Currently the USDA projects US wheat exports will reach 23.1mn t over the marketing year, with more than half of those volumes shipped as of 26 December. Outstanding sales to Mexico account for only 5pc of USDA total export expectations.

By Ryan Koory