Since December, numerous rumblings have inferred U.S. corn exports were too low. At that time many had projected U.S. corn exports would be increasing 200 million to 300 million bushels with corn ending stocks shrinking a similar amount. The frustration has been high as USDA seemed stuck in a rut with the January, February, and March WASDE reports unchanged. At those times a common thread suggested USDA was merely “punting,” kicking the can down the road waiting for more information in particular to South America corn production in Brazil and Argentina.
Last month China purchased 4 million tons, or 157 million bushels of U.S. corn. Yet, corn prices were unable to break above the highs seen in early February. In February and March, both corn and soybeans were firmly entrenched in a sideways price pattern. The March 31 USDA Perspective Planting Report was a bullish surprise, a game changer which had both corn and soybeans locked up their respective daily limits of 25 cents and 70 cents.