Frontrunner - 5th February 2021
Last week’s Frontrunner reported China making significant purchases of US corn. China bought over six million tonnes, which helped take total US weekly corn export sales to 7.44 million tonnes for the period up to the 28th January. This is a record high, doubling the previous weekly high set back in 2012.
The United States Department of Agriculture (USDA) estimates that US 2020-21 exports will reach 64.77 million tonnes, which will leave US ending stocks nine million tonnes down on the year at 39.42 million tonnes.
However, the US has now sold 87% of this estimated available surplus with seven months of the season to go and with the next crop still sitting in the seed bag. Adding to this bullish situation are reduced corn production estimates from South America. Adverse weather has led the Buenos Aires Grain Exchange to lower estimates for Argentina by one million tonnes to a new total of 46 million tonnes.