Big Week of Export Sales Boosts Prices
Bryce Knorr
Published: Apr 23, 2009
Another big week of export sales lifted futures higher in early trading Thursday, with corn and soybean business especially brisk in the latest week. While sales were expected to be good, the government's tally sheet came in better across the board.
USDA reported 50.5 million bushels of net new corn sales, almost all of them old crop, with most of the listed buyers coming from Asia and the Americas. The strong showing keeps corn on track to beat USDA's current forecast for sales, which could tighten ending stocks projections into summer.
The government separately reported the sale of 4.6 million bushels this morning to unknown destinations under its daily reporting system for larger orders.
Strong old and new crop business boosted bean sales to 53 million bushels in the latest week. Around 22.5 million bushels of the total was in old crop, but China was a relatively small buyer this week overall. Many of the sales were listed as "unknown destinations,•bCrLf which could be shifted to the world's largest importer.
Traders continue to debate the future direction of Chinese sales, with its trade delegation visiting this week on its annual buying mission. Purchases from the trip are expected to be lower than those seen in the last couple of years, as some buyers have already purchased a lot of supplies over the winter.
USDA also announced the sale of 3.7 million bushels of new crop beans to Mexico this morning under its daily reporting system
Wheat sales also came in better than expected at 15.9 million bushels, but almost half the total was new crop. Buyers from Asia and the Americas continue to dominate the tender list, because ample supplies are still being sold out of France and the Black Sea into the Middle East.
For the complete export report, click here.
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Tagged: usda, wheat, soybean
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