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New Crop Purchases Lift Soybean Exports

Traders for the third straight week expected a slowdown in U.S. soybean exports. And, for the thirds week in a row, numbers came in much better than expected.

Net new bookings for the week totaled 51.2 million bushels, much better than estimates, thanks to large new crop purchases by the world's biggest importer. China took 13.5 million bushels of old crop and another 24.6 million bushels of new crop, accounting for almost 75% of the total.

Soybean shipments were also decent at 26.1 million bushels, more than doubling the weekly rate needed for the rest of the marketing year to reach USDA's current forecast.

Corn sales also topped expectations at 32.9 million bushels. Though one load was switched from China to Saudi Arabia, another was shipped out to China, where futures prices shot to new highs today on ideas the 2011 crop was much smaller than previous estimates. Total shipments of 40.8 million bushels beat the rate forecast by USDA for the rest of the marketing year as well. Japan, Mexico and South Korea accounted for most of the new sales.

Though wheat sales of 13.2 million bushels were below trade guesses, shipments of 33.6 million bushels were quite strong, as previously reported in Monday's inspections summary. Wheat got a little more good news this morning: Egypt filled half of its latest tender with U.S. origination, taking 2.2 million bushing of soft red winter wheat, and a like amount from Canada.
Low prices and cheap ocean freight rates have made U.S. wheat more competitive into North Africa. Kazakhstan reports it still has huge amounts of wheat on hand, but much of that grain is believed to be out of position.

For the complete export report, click here.