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Corn, Soybean Sales Strong

Export sales of corn came in as expected at an impressive 66.2 million bushels in the latest weekly tally released by USDA. However, most of the business was new crop, with sluggish old crop shipments failing to keep pace with the weekly rate forecast for the rest of the year by USDA.

New crop business, reported earlier under USDA's daily announcements of big purchases, went mostly to China and unknown destinations, which traders believe eventually will be headed east as well. Total new crop bookings are running at their highest level since the end of the 1995 crop year. However, the pace of old crop shipments is 3% behind the average for this time of year.

That same pattern also was seen in soybeans. Total old and new crop bookings topped 24 million, better than trade guesses. But almost all the trade was for new crop to China and unknown destinations, with shipments lagging the pace forecast by USDA.

Weak crush margins, meanwhile, are also hurting processors, with the National Oilseed Processors Association reporting June Crush at 117.7 million, a little below guesses. However, the total keeps beans on track to meet USDA's forecast for the 2010 crop year.

Wheat sales of 19.1 million bushels were decent, in line with trade guesses and the rate forecast by USDA. However, both sales and shipments are a bit slow compared to average, since business tends to be front loaded.

 For the complete export report, click here.