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Wheat Sales Pick Up

While U.S. wheat isn't exactly flying off the shelves as the last days of the marketing year approach at the end of the month, new business totals did turn out better than expected in the latest week. Indeed, while corn and beans grabbed the headlines recently, wheat fared the best in this morning's weekly totals released by USDA.

Total old and new crop sales hit 26.1 million bushels in the latest week. While regular customers from Asia and the Americas accounted for most of the business,  Spain showed up on the list of buyers thanks to concerns about drought there and lower production in general across Europe this year.

While old crop shipments are still behind the pace forecast by USDA for the marketing year, total new crop purchases and unshipped deals are decent for this time of year. No major producer is yet suffering an unmitigated disaster. Still, a series of problems around the world should lower production in the coming year.

Corn sales topped 34 million bushels in the latest week, improving from last week, though the trade was looking for more. Shipments also remain behind the pace forecast by USDA, due to a tight cash market. China picked up 2.9 million bushels of old crop and 4.4 million bushels of new, with big sales also attributed to unknown destinations that may be bound for the world's largest country.

Soybean sales of 24.7 million bushels were below trade guesses and last week's huge numbers, though USDA separately today announced the sale of 17.6 million bushels of old crop to China under its daily reporting system for large purchases. That could account for the bull spreading that pushed July futures higher yesterday despite weak outside markets.