Corn sales to Mexico slow after late September spike
Net corn export sales to Mexico were 260,333 MT the week of Oct. 9, a four-week low. Net sales were almost 1.15 MMT during the week of Sep. 28, and Mexico tends to dial back purchases after such a strong one-week showing. Overall, sales to Mexico have been strong so far in 2023/24, with record outstanding orders of 6.52 MMT.
While export sales have been good, this season saw lower carry-over sales than recent years with export totals similar to the current forecast for 2023/24, meaning sales will need to make up that deficit. Total weekly U.S. exports are also dragging a bit so far this year, even compared to years of similar exports. USDA lowered projected exports by 25 million bushels in the October WASDE, citing this slow early-season demand.
China remains on the sidelines of the U.S. corn market, with just 209,304 MT of outstanding sales and zero shipments during the week of Oct. 12. China likely accounts for a good portion of sales to unknown destinations, which at 1.64 MMT were up 13 percent from this time last year, but these sales tend to be China’s hedge against problems with the crop in Brazil and a number of these orders end up being cancelled.
The full version of this commentary appeared on our IQ platform Oct. 19, 2023. Further information, statistics, and pricing for the corn market are available to IQ subscribers.Learn more about becoming a subscriber.
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