Private exporters reported to USDA the following activity:
- Export sales of 284,480 MT of corn for delivery to Mexico during the 2013-14 marketing year; and
- Optional origin sales of 112,000 MT of soybeans for delivery to China during the 2013-14 marketing year. An optional origin contract provides that the origin of the commodity may be the U.S. or one or more other exporting countries.
Traders suspect the optional-origin soybean sale will be sourced using U.S. soybeans and provides yet another reminder of the country's massive appetite for soybeans. This could spur additional buying into old-crop soybean futures this morning as supplies are tight. Meanwhile, the fresh demand news for corn is positive as it signals current prices are stimulating demand, which should help turn the $4.50 level in March futures into solid support.
The marketing year for corn and soybeans began Sept. 1. USDA issues both daily and weekly export sales reports to the public. Exporters are required to report to USDA any export sales activity of 100,000 metric tons or more of one commodity, made in one day or quantities totaling 200,000 tons or more in any reporting period, to one destination, by 3 p.m. Eastern time on the next business day following the sale. Export sales of less than these quantities must be reported to USDA on a weekly basis.