Corn Sales Boom Ahead of USDA Reports
Buyers are starting to take advantage of this week's big break in prices.
Bryce Knorr
Published: Jul 2, 2009
End users were apparently nervous headed into USDA's reports this week, snapping up more than 50 million bushels of corn in the week ending June 25. And while the reports turned out to be extremely bearish, buyers are starting to take advantage of this week's big break in prices.
USDA this morning announced the sale of six million more bushels of new crop to unknown destinations under its daily report system, on top of a 2.2 million bushel sale to South Korea. But the big news was the weekly total, which far outpaced trade guesses. In addition to regular customers from Asia and the Americas, Egypt bought 9.5 million bushels last week to help boost the total.
Soybean sales were also good in the weekly summary. The 16.3 million bushel totaled included 7.1 million bushels of old crop. Actual shipments were also good at 14.2 million, which is important because the pace is lagging the normal rate for this time of year.
Meanwhile, new crop sales are off to a brisk start. USDA today announced the sale of 24 million bushels of 2009/2010 soybeans to China under its daily reporting system. That could lead to volatile trading today after bearish employment reports sent other markets lower in early trading.
Wheat sales remained slow last week, with net new bookings of only 8.9 million bushels. However, business is starting to pick up after this week's price break, with Taiwan and Japan buying today.
For the complete export report, click here.
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Weekly Export Sales (million bushels) |
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AS OF WEEK ENDING |
6/25/09 |
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Actual |
Est. |
Last Week |
USDA F'cast |
Export Ship-ments |
USDA F'cast |
% of USDA Commit. |
Ave. |
% of USDA Ship-ments |
Ave. |
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Wheat |
8.9 |
11.0 |
13.5 |
14.2 |
13.6 |
16.5 |
18% |
21% |
5% |
5% |
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Corn |
50.1 |
27.6 |
36.9 |
1.0 |
29.3 |
42.4 |
102% |
94% |
80% |
80% |
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Soybeans |
16.3 |
9.6 |
8.9 |
(0.0) |
14.2 |
2.3 |
100% |
101% |
90% |
95% |
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Source: USDA, Reuters |
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Tagged: usda, wheat, soybeans, Bushel, soybean
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