China Cancels Bean Sales
Traders have been expecting it for awhile now.
Bryce Knorr
Published: Mar 11, 2010
This week's rally in the soybean market could be put to the test today, after the latest export sales data revealed China canceled at least 7.1 million bushels of previous sales. Those washouts, along with another cancellation by “unknown destinations,” caused a net reduction in old crop soybean sales for the week, according to USDA.
China did purchase a load of new crop, but that only partly offset the damage, leaving net sales for the week lower. USDA also announced China took another load of new crop yesterday.
While sales were disappointing, shipments remain elevated at 34.3 million bushels, well above the rate needed to reach USDA's updated forecast for the marketing year. The agency increased its forecast in yesterday's monthly supply and demand report, helping tighten old crop stocks.
Corn sales were also slow during the latest week, with just 13.3 million bushels of old and new crop moving. Amounts remain relatively small, with most buyers taking only a fraction of their usual amounts due to concerns over either price or quality.
Corn shipments were better, however, with the 38 million bushels moved close to the rate needed to reach USDA's revised forecast for the marketing year. The government slashed its estimate of sales by 100 million bushels in yesterday's report.
Wheat, which is on pace to see exports drop to the lowest level since 1971, was the only bright spot of the week. Net new business totaled 16.5 million bushels, with Nigeria again dominating the list of buyers. Shipments were also ahead of the pace needed to reach USDA's forecast for the year.
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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3/4/10
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Actual
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Last Week
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Trade Est.
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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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16.5
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3.8
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12.9
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5.8
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19.9
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18.0
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89%
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87%
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72%
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72%
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Corn
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13.3
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32.8
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28.5
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23.8
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38.0
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38.8
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67%
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66%
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45%
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49%
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Soybeans
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(1.9)
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13.6
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9.2
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4.2
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34.3
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7.5
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93%
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89%
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80%
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76%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybean, soybeans
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