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Chinese Soybean Buying Slows

So much for wrapping up loose ends!

Chinese soybean importers went on vacation last week without a last-minute surge of buying, producing disappointing totals of both export sales and shipments in this morning’s USDA export summary.

Net new bookings of soybeans in the latest week totaled just 16.6 million bushels, with China accounting for a little less than half that amount. Shipments were also thin at 12.5 million bushels, though harvest delays and tight 2008 stocks are keeping the pipeline tight.

China’s weeklong fall holiday ends today, suggesting next week’s sales report could also be slow. Still, furious Chinese buying over the summer has commitments to date totaling 59% of USDA’s forecast for the marketing year. That could increase pressure on the government to raise its official forecast in Friday’s supply and demand report.

Corn sales were also sluggish in the latest week at 20.5 million bushels, though a reduction was expected from the previous week’s big total. The big three – Japan, South Korea and Mexico – again dominated sales, with other smaller buyers from Asia and the Americas showing up. Shipments improved to 45 million bushels, squaring the pace for the market year with the average.

Wheat sales were the bright spot of the sales report, something that hasn’t happened often. Nigeria was the biggest buyer at 5.8 million bushels, with a variety of locations listed in the Middle East, Asia and the Americas. Shipments were also strong at 26 million bushels, though total commitments for the year remain well behind the average pace.

For the complete export report, click here.