Export Sales Exceed Expectations All Around

While the global credit squeeze is making it difficult for some buyers to get credit, others are finding cheap prices an offer they can't refuse. Export sales in the latest week beat expectations all around, with new business also topping weekly rates forecast by USDA.

Corn sales were a particular bright spot, after a slow start in most of September. Total sales hit 37.7 million bushels, helping commitments for the year to stay well above normal for this time of year, thanks to strong forward purchases during the summer. The bright spot in the line came from the return of Japanese buying, which has been slow. Japan bought almost 13 million bushels in the latest week, according to the government.

Actual shipments of corn are still a concern, however, falling behind normal, due to shipping disruptions caused by hurricanes and the delayed pace of harvest caused by spring floods. Shipments totaled 32.5 million bushels, 20% less than the weekly rate forecast by USDA for the rest of the marketing year.

Soybean sales have been strong lately, and kept up that pace. Net new sales of 22.1 million bushels were distributed to a host of buyers, though China, the leading importer in the world, bought just 6.2 million bushels. Another worry: Shipments picked up to million bushels, but still remain behind forecast levels due to tight supplies at the Gulf.

Wheat sales of 20.8 million were down from the previous week but ahead of expectations and the USDA forecast for the rest of the marketing year. The only worrisome figure was the lack of Asian buyers in the lineup. That could be changing, however, with Japan resuming its weekly tenders this week after stopping them to review buying procedures in the wake of a tainted rice scandal.

Source: USDA, Reuters