The Hueber Report

Corns turn to shine

When it rains, it pours.  I am speaking figuratively at this point and more specifically about the swelling demand for US corn.  For the week ending March 8^th, we set a new marketing year high with sales of 2,505,100 MT or 98.64 million bushels. This was 35% above last week and 41% above the 4-week average. During the first seventeen weeks of the marketing year that carried us through the end of December, we sold 680.9 million bushels of corn for an average of 40 million per week.  Since January 1 through last week, which is ten weeks, we have sold an additional 670.6 million bushels or an average of 67 million per week; a 68% increase. Yes, the USDA did boost the export projection by 175 million in the March estimate, but regardless, it is encouraging to see this backed up by hard numbers.  Marketing year to date, we have now sold 1.718 billion bushels which is 77% of the target.  With 25 weeks remaining in the year, this means we need to average 20.3 million in sales each week.  I should point out that after an initial boost of optimism from the numbers, the corn market turned soft, which would seem to suggest that this particular advance has grown weary.  Or more simply put, we failed to maintain a positive response to positive news. 

Soybeans sales were by no means poor, but they were 49% below last week at 1,269,600 MT or 46.66 million bushels.  This was actually 30% above the 4-week average though and keeps us well on pace with the USDA projections. Marketing year to date we have now sold 1.810 billion bushels or 87.7% of target. With 25-weeks to go, this means we need to average 10.2 million per week moving forward.   Topping the list this week for buyers was again China with 509.3k MT, followed by unknown destination at 211k and then Egypt who purchased 188.3k.

Unfortunately, the demand has not caught hold in wheat as for the week we sold just 162,800 MT or 5.98 million bushels.  This was 58% below last week and 47% below the 4-week average.  Mexico was the top purchaser with 36.4k MT, followed by China at 35.6k and then Guatemala taking 29.1k.  Marketing year to date we have now sold 815.3 million bushels or 87.7% of the target.  For this crop, we have just 12-weeks in the year and need to average 9.1 million per week to hit the 925 million bushels target.

Finally, the NOPA crush numbers for the month of February have been released and came in above expectations.  We crushed a total of 153.72 million bushels, and while down nearly 10 million from last month, the trade was expecting a number of around 149 million.