Weekly corn exports were just under two million metric tons Thursday morning, however old crop sales were highlighted by net cancellations which is concerning to market analysts.
Allendale commodity broker Greg McBride says the U.S. Export Sales Report showed old crop corn with net sales reductions of 113,300 metric tons ? a marketing-year low.
?Net cancellations for corn this week and 334,000 tons was the cancellation by China, but they did buy a total of 1.36 million for the new crop,? said McBride. ?So, we don?t know if that?s necessarily a little bit of cancellation and then trying to roll it into the new crop, but we did have strong new crop sales at just over 2 million metric tons.?
For soybeans, old crop sales were down 43 percent from the previous week and 38 percent from the prior four-week average. New crop soybean sales came in below the range of estimates.
?Inside of the range of estimates for the old crop at 94,000 tons,? said McBride. ?New crop was 102,500 tons, so bearish all the way across the board here for beans. Neutral for wheat, meal and oil for this week.?
Now that the release of the May WASDE Report has passed, McBride says growers need to focus on local weather patterns.
?We do have a NOAA forecast that is hot and dry for June/July,? said McBride. ?This month of May supposedly is going to be a little bit wetter on the Eastern Corn Belt and little bit drier on the Western Corn Belt, which is a continuation of what we?ve seen already for the first two weeks here.?
The next U.S. Export Sales Report will be released on Thursday, May 20th. McBride?s full interview can be heard below.
