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Export Sales Remain Good

Traders remain concerned about the potential for soybean exports to fall off a cliff soon, as record production from South America hits the world marketplace. But so far, sales remain strong, though Chinese buying eased in the latest week according to USDA.

Total old and new crop sales topped 31 million bushels in the latest week, though China took only 41% of the 2009 crop total. Its void was filled by buyers from Asia and Europe. And, while there were reports of a few Chinese cancellations this week, shipments were a very strong 51.2 million bushels. That pushes the total amount shipped to 65% of USDA's forecast for the entire marketing year, well above the average pace.

Domestic demand for soybeans remains strong as well. Thanks to good U.S. processor margins, Census Crush for December was a record 173 million bushels, pushing the year-to-date total 10% above the 2008 crop marketing year.

Corn and wheat sales also were decent this week, though down from last week's marketing year highs. Corn sales came in at 35.5 million bushels, with unknown destinations again leading the buying list. Shipments remain very slow, however, less than 21 million bushels, well behind the pace normally seen this time of year.

Wheat sales totaled 25.3 million bushels, with buyers showing up from around the world as prices fell. Shipments remain a little slow, but also appear to be picking up.

For the complete export report, click here.