US corn exporters seize ‘window of opportunity’ on dollar, feed momentum

Buoyant US corn sales reflect a window of opportunity driven by a fall in the dollar, the high cost of other export origins, and low corn price relative to other animals feeds, market sources have said.

“There is a window here where it works, and the market is taking advantage of it,” Advanced Trading’s Kelly Herrick told Agricensus, with a slew of industry data delivering the evidence that corn volumes are moving.

“There’s been enough of a flat price rally which has probably offset a fair amount of the US dollar’s fall, but it now works to a lot of places,” a US-based trader said of the change.

“It seems to be moving, and we need it to move because we have got a lot of it,” the trader continued.

US exports topped 1 million mt in the week ending January 25, according to data released Thursday from the USDA, with export sales exceeding ambitious expectations at 1.8 million mt.

On top of that, private export sales over the last five days have seen another 500,000 mt of corn moving out of the US heading to destinations as diverse as Egypt and Spain, while Vietnam has also recently stepped in to buy US corn recently.

Typically, Vietnam selects South American corn as its lower moisture content means it stores better in humid climates and gives buyers greater flexibility – but the economics remain compelling and the outright price proved too tempting.

“The US is the cheapest and at the end of the day our business is all about the price,” an Asia-based corn trader told Agricensus on Vietnam’s buying.

Corn also competes with wheat and soybean for animal feed, with both seeing substantial price hikes through January as weather fears have gripped market participants.

Agricensus assessed the US FOB Gulf corn price at $165.50/mt, versus Argentina at $168.50/mt and Ukraine at $174.75/mt Thursday.

Brazil is currently between crops awaiting on the outcome of safrinha corn plantings in the coming weeks, with exports typically starting to pick up from April.

Brazil’s soybean price was assessed at $388.75/mt with Ukrainian feed wheat assessed at $188/mt, Thursday Agricensus data shows, making corn competitive for animal feed.

Feed prices for wheat have been competitive with milling wheat prices, as a lack of feed quality wheat has seen prices rise to close on those of milling wheat.