Export Sales Good All Around

Corn and soybeans posted another good week of export sales in this morning's weekly summary from USDA. And, after several lackluster weeks, wheat put in its second best showing since last September, as a weaker dollar and cheap prices finally stimulated some business.

Net new bookings for wheat topped 21 million bushels, above the rate forecast by USDA for the rest of the marketing year. In addition to regular customers, there were signs of buying due to potential weather problems in the southern hemisphere, including purchases by Brazil and the Philippines.

Brazil normally buys much of its wheat from neighboring Argentina, where supplies are expected to be down sharply — if farmers are allowed to export at all. Smaller Asian customers are also nervous about the possible El Nino-related problems in Australia.

Total corn sales were down a tad from the previous report's big numbers, but still came in at a strong 49.4 million bushels of old and new crop dealings. Export shipments were a marketing year high at 58.3 million bushels, one of the factors boosting basis along the river system recently. Buying out of the Middle East was especially noted, as countries there struggle with drought and ongoing water shortages.

China again was the big player in the soybean market, at least for new crop. The world's largest importer actually cancelled a little old crop business, but other smaller buyers more than made up that. China aggressively bought new crop, taking 17 million bushels, almost half the total for the week. Soybean meal exports also were strong, further tightening supplies in the U.S.

USDA also announced another big sale to China this morning, under its daily reporting system. While most of the 70-million bushel deal was for new crop, 4.4 million bushels of old crop also were included. China also bought 8.5 million bushels earlier in the week according to USDA.

For the complete export report, click here.