Price correction pauses
Global grains and oilseeds values have taken a pause from the recent correction with some notable purchases.
US weekly export sales report further large purchases of corn totalling 1.224MT to China for the 2021/22 marketing year.
Corn prices recovered by 1.7% on the news and wider global grain markets followed suit (we will cover the outlook and China in more detail in our next weekly report).
Improved weather condition in the US Midwest as well as Brazil is taking some of the risk premium out of the market which remains in its corrective phase.
Latest Trade Data
Net sales of 121,000 metric tons (MT) for 2020/2021 were up noticeably from the previous week and up 21 percent from the prior 4-week average.
For 2021/22 net sales of 317,000MT, Exports up 9% from the previous week and 3% from the prior 4 week average.
Net sales of 84,200 MT for 2020/2021 were down 11 percent from the previous week and 45 percent from the prior 4-week average.
Why does this matter?
We previously highlighted the importance of the USDA WASDE Chinese corn estimates – view report.