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Everybody (in China) Loves A Soybean Bargain

Worries about the slow pace of soybean exports were already beginning to ease this week, even before USDA released the latest weekly tally. China indeed was an aggressive buyer, helping boost total sales for the week to 38 million bushels, with the world's largest country taking more than 80% of the total. Net new bookings were the best since last November, as buyers are only starting to switch from South America, where farmers are reportedly less eager to sell at lower price levels. Shipments still remain slow due to tight pipeline supplies and South American competition.

To put icing on the cake, USDA also announced the sale of another 3.85 million bushels of 2011 and 2012 crop beans to Mexico today under its daily reporting system for larger purchases. That should help boost next week's total, because China has also been buying this week as well. Sales could take a bit of a break after that, because markets in China are closed next week.

China also showed up on the list of corn buyers, taking 7.2 million bushels and apparently shipping them out right away. Japan led all buyers, accounting for almost half the 38 million bushels booked. Corn shipments are starting to gather steam as harvest progresses, though they're still slightly behind the rate forecast by USDA for the rest of the marketing year.

Wheat sales disappointed a bit at 15.8 million bushels, though that was above the rate forecast by the government for the rest of the marketing year. Regular customers continue to dominate the buyers list, with the U.S. still mostly shut out of the Middle East and North Africa. Russian wheat enjoys a big price and freight advantage, and was expected to capture today's latest snap tender out of Egypt.

For the complete export report, click here.