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Export Sales Better Than Expected

After bracing for bad news about demand, traders were pleasantly surprised by this morning's export sales tally, which was better than expected, especially for corn and soybeans. The numbers could help allay some of the market's jitters, though a rising dollar may still pressure futures.

Soybean sales posted the most notable improvement, with old and new crop business topping 27 million bushels. The trade had anticipated only a little new crop business previously announced under USDA's daily reporting system. Instead, the new crop total was much larger – 19 million bushels – with almost 8 million bushels of old crop bookings thrown in as well. Some of those deals may have been switched from China, which was not on the list of major buyers this week. Still, any old crop demand is good news at this point, considering the market's worries about sales falling off a cliff in the face of South America's record crop.

Shipments were also strong, coming in at 33.5 million bushels, well above the rate forecast by USDA for the rest of the marketing year.

Corn sales were also better than expectations at 29.4 million bushels, all old crop, with Japan leading the list of buyers. Shipments were decent too, just under the rate needed to meet USDA's revised forecast for the marketing year. The agency lowered its estimate of 2009 crop exports by 100 million bushels in last week's March supply and demand report.

Wheat sales also beat expectations, topping 16 million bushels, including 4.2 million bushels of new crop deals. Buyers continue to take relatively small amounts, however, and shipments lagged the pace needed to actually reach USDA's forecast for the 2009 crop marketing year.

For the complete export report, click here.