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Export Sales Mostly Disappointing

Export sales stumbled out of the gate in the first week of 2010, with new business generally falling below trade estimates, especially for wheat and corn.

Wheat volume remains extremely slow, just 6.7 million bushels, one reason USDA slashed its forecast for sales in Tuesday’s supply and demand report. Total sales for the year are pegged at just 825 million bushels, the lowest total since before the export boom of the 1970s began. Nigeria led the list of buyers, with many Asian customers taking nothing or only token amounts.

Corn sales for the week also were sluggish, just 12.9 million bushels, well behind the weekly rate forecast by USDA for the rest of the market year. The government kept its total forecast for the year unchanged in Tuesday’s report, and business did appear to pick up a little on this week’s price break. Asian buyers took most of this week’s total.

Soybean sales were the best of the bunch at 27.7 million bushels, though that was a little below trade guesses. Shipments were very strong at almost 60 million bushels, with no sign of big cancellations yet. China accounted for 70% of this week’s sales and 60% of the shipments.

In other demand news today, the National Oilseed Processors Association reported December crush at 164.3 million bushels, well above trade guesses, easily surpassing both last year’s figure and the November total. USDA raised its forecast for marketing year crush in Tuesday’s report due to the strong start to business in the marketing year, noting lower extraction rates for oil.

For the complete export report, click here.