U.S. Corn and Soybean Sales Losing to Global Competition

Corn sales increased from the net reduction reported last week, but came in at their lowest level since January 2013. Corn and soybean sales have struggled on the global market since March 2015 as buyers have looked to Eastern Europe and Brazil to purchase cheaper grain. Wheat sales decreased by 50% following three consecutive weeks of increases. Exports for corn and soybeans both reported decreases near 15%, while wheat exports increased nearly 30% from last week.

Weekly net corn sales for the 2014/15 marketing year were 29,200 metric tons (MT), rebounding from the sales decrease reported last week. Increases were reported from South Korea, Egypt, Venezuela, Colombia, and Honduras. Decreases were reported from unknown destinations, Taiwan and the Dominican Republic. Exports were 840,600 MT, a 16% decrease from last week and an 18% decrease from the prior 10-week average. The primary destinations were Mexico, Japan, Egypt, South Korea, and Peru.

Weekly net soybean sales for the 2014/15 marketing year were 96,300 MT, rebounding from the decrease reported last week. Increases were reported from Indonesia, Morocco, and Taiwan. Decreases were reported from unknown destinations. Exports were 178,100 MT, a 15% decrease from last week and a 22% decrease from the prior 10-week average. Primary destinations were Indonesia, Mexico, and Colombia.

Weekly net wheat sales for the 2015/16 marketing year were 421,600 MT, a 50% decrease from last week, but a 2% increase from the prior 10-week average. Increases were reported from the Philippines, Mexico, China, and Italy. Decreases were reported from unknown destinations, Indonesia, and Cyprus. Exports were 399,500 MT, a 27% increase from last week and a 19% increase from the 10-week average. Primary destinations were Mexico, Nigeria, Japan, Canada, and Italy.


Source: USDA Foreign Agricultural Service

Source: USDA Foreign Agricultural Service

The data for the report was taken from the August 13, 2015 USDA Export Sales report for the week ending August 6, 2015. The information reported is an aggregate of sales and exports data reported to the USDA Foreign Agriculture Service.