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Export Business Quiet This Week

Higher prices, stiff competition and more costly shipping expenses continue to hamper U.S. export sales, despite a weak dollar. USDA reported another week of rather tepid sales, though soybean shipments, as expected, were massive.

The agency confirmed Monday’s big export inspections for soybeans, with shipments topping 62 million bushels in the latest week. China took more than 60% of the total, shipping out early heavy purchases, and also led the list of new buyers. Net new bookings for the latest week totaled 19.3 million bushels, according to USDA.

While well above the rate needed to meet USDA’s forecast for the marketing year, the bean total was a little below trade guesses. Traders also are wondering when China and other buyers will switch to South American origination, and whether quality concerns will cause cancellation of early purchases.

Corn sales at 22.5 million bushels beat trade guesses and last week’s poor showing, but remain below the rate forecast by USDA. After a strong start, new bookings are slipping, bringing into question whether the government may ultimately be too high about exports of the 2009 crop.

Wheat sales were again disappointing at 10.5 million bushels, as business has been slow to develop in the first half of the market year when exports normally are strongest. That’s raising concerns USDA may lower its export forecast as early as next week, when supply and demand projections are updated.

For the complete export report, click here.