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China Absent from Bean Buyers List

Chinese traders were on vacation this week for their extended Lunar New Year break. But the world’s largest soybean importer still rattled the market with release of the latest export data by USDA. China was absent from the list of major buyers for the first time in memory, with the weekly total falling to yet another marketing year low, just 7.5 million bushels.

Moreover, the government noted 10 million bushels were shifted from “unknown destinations,” an indication the cargoes may have been cancelled by China and switched to other accounts.

Still, some shifts this time of year are inevitable. And China took half the 41.1 million bushels actually shipped during the week. But with a record crop from South America ready to fill the pipeline, the market is likely to remain nervous because China still has almost 150 million bushels of unshipped sales on the books.

While sales of corn and wheat are looking somewhat better, slow shipments remain an issue for those crops. Corn sales hit 38.4 million bushels for the well, well above trade guesses and the weekly rate needed to reach USDA’s forecast for the marketing year. Japan was the leading buyer, despite indications the country will buy more from South America this year due to quality concerns.

Shipments of corn totaled just 25.7 million bushels, well under the weekly rate needed, as actual movement remains well behind the pace forecast by USDA.

Wheat shipments also remain slower than forecast, though sales were decent at 17 million bushels. Nigeria, flush with oil dollars, was again a big buyer.

This week’s report was delayed until Friday due to the President’s Day holiday Monday. Also on Friday the government reported the sale of 4.1 million bushels of old and new crop milo to Mexico.

For the complete export report, click here.