Bean Sales Huge, Wheat Surprises
Corn sales continue to chug along, though they’ve lost a little steam recently.
Bryce Knorr
Published: Aug 27, 2009
Big sales of soybeans, mostly to China, have become almost routine lately, but this morning’s weekly total could raise even the most jaundiced eyebrows. USDA reported total sales topped 75 million bushels in the latest week, mostly new crop. China accounted for around 75% of that total, which included 23.3 million bushels not announced previously under USDA’s daily reporting system.
On top of stronger than expected crush for July reported today, the reports underscore the strong demand supporting the soybean market. Toss in a renewed farmers’ strike in Argentina as well as slow crop development and it’s little wonder November futures continue to flirt with the $10 level.
While the big bean sales were anticipated, net new business for wheat was also encouraging. Sales hit 24 million bushels, a marketing year high, with a big deal to Nigeria for 8.2 million bushels pushing the total. Previous weeks featured a little of little buyers, and big chunks are essential, with sales for the near well below USDA’s forecast for the year.
Corn sales continue to chug along, though they’ve lost a little steam recently. New crop business remains behind the strong pace of the last few years, as buyers appear conflicted between fears of delayed crop development and a potentially large crop. The good news is that demand reflects buying from the Middle East and North Africa, in addition to Asia and the Americas, a sign U.S. grain is competitive.
For the complete export report, click here.
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Weekly Export Sales (million bushels)
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AS OF WEEK ENDING
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8/20/09
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Actual
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Last Week
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USDA F'cast
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Export Ship-ments
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USDA F'cast
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% of USDA Commit.
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Ave.
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% of USDA Ship-ments
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Ave.
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Wheat
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24.0
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20.3
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12.3
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16.6
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15.4
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32%
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36%
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16%
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20%
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Corn
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38.3
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45.4
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(67.4)
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50.2
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133.3
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107%
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103%
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95%
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96%
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Soybeans
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75.5
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106.9
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(1.2)
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11.4
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0.9
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105%
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103%
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96%
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101%
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Source: USDA
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Tagged: usda, wheat, soybeans, soybean
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