China has cancelled more soybean purchases from the U.S., according to the latest weekly export sales report. USDA said China cancelled 8.8 million bushels of 2007 crop purchases from the U.S., and put on only 3.3 million bushels of new crop business.
Net old crop soybean sales dropped as a result by 7 million bushels. Combined with new crop business that led to only a small total net sales of 5.3 million bushels.
Reports of Chinese cancellations and outright defaults have swirled in the trade for several weeks, in part because prices out of Argentina are much cheaper than U.S. origins. Reports suggest Argentina could have between 25% and 40% of its old crop beans still on hand, after sales were blocked for months during the farmers strike this spring.
Wheat export sales for the week were 14.4 million bushels, in line with trade expectations. Corn bookings totaled 33.3 million bushels, again beating analysts' guesses.
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