Chinese Cancellations Trim Soybean Sales
Other exports were also weaker than expected.
Bryce Knorr
Published: Jun 4, 2009
After surging during the winter and spring, soybean exports ran into a brick wall last week. New business was very sluggish and USDA confirmed Chinese cancellations, causing net bookings for the week to fall to just 3.1 million bushels.
China cancelled 4.1 million bushels, which was already reported by the trade. Coupled with additional cancellations by unknown destinations and Japan, old crop sales were actually negative for the week.
It's not unusual for China to cancel sales this time of year or roll them to new crop, and U.S. buyers were reportedly eager to snatch up the cancelled loads at the Gulf. Still, traders remember how waves of overbookings lead to a major market collapse during the bull market of 2004.
China was also reported to be ready to sell some of its reserves to take advantage of the rise in prices on international markets.
Other U.S. exports were also weaker than expected, according to today's weekly tally. Wheat sales came in just under 10 million bushels for the last full week of the marketing year, with new crop bookings remaining very light. While a number of buyers were listed around the globe, amounts were small, as end users appeared unwilling to commit to buying at current higher prices levels with harvest just around the corner.
Corn sales and shipments also were below expectations, with net new bookings of just 25.9 bushels. Regular customers from Asia and the Americans took most of the total.
For the complete export report, click HERE. 
Permalink: Click here
Tagged: usda, wheat, soybean, Harvest
|