Exports Sales Post Big Week
Less grain moving out of the Black Sea raises interest in U.S. corn and wheat.
Bryce Knorr
Published: Aug 5, 2010
U.S. export sales were improving last week, even before the Russian government announced a temporary ban on wheat shipments this morning. The latest tally from USDA shows good business across the board for corn, soybeans and wheat, with more new sales announced this morning.
Wheat sales topped 31 million bushels, down from the previous week but still double the weekly rate forecast by USDA for the marketing year. Biggest buyers included unknown destinations and Japan, which also filled all of its regular tender this week from the U.S. Other buyers were noted from across Asia, the Middle East and the Americas, with deals starting to involve larger volumes than just a single cargo at a time.
Hard red winter wheat business topped the action, with weak cash prices making it more attractive to world buyers, as the value of the dollar tumbles. USDA also announced the sale of another 4 million bushels this morning under its daily reporting system for large purchases.
Russian wheat production is expected to drop 25% this year, with supplies out of other Black Sea exporters also down.
China took a load of both old and new crop corn, with hefty 2010-2011 sales pushing the total for the week to 51 million bushels, well above trade guesses. Some 15 million bushels were previously announced under USDA's daily reporting system. Shipments are still running a little slow, however.
Soybean sales were down from the previous week but still totaled a very healthy 43.1 million bushels. China cancelled 6.3 million bushels of old crop purchases, but took a hefty 29 million bushels of new crop, with more daily sales reported this week. USDA said China purchased another 16.7 million bushels this morning, with 4.1 million more booked to unknown destinations.
A Chinese think tank today said production there could drop by more than 3% as farmers switch to other crops, forcing the country to rely even more heavily on imports.
For the complete export report, click HERE.
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Weekly Export Sales (million bushels)
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AS OF WEEK ENDING
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7/29/10
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Actual
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Last Week
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Trade Est.
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USDA F'cast
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Export Ship-ments
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USDA F'cast
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% of USDA Commit.
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Ave.
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% of USDA Ship-ments
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Ave.
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Wheat
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31.4
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33.8
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26.6
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15.3
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31.4
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20.0
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29%
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31%
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12%
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14%
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Corn
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51.0
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37.8
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41.3
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(20.7)
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32.8
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60.6
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104%
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101%
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88%
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89%
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Soybeans
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43.1
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54.5
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40.4
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(15.3)
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9.6
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15.8
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103%
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103%
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96%
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98%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybeans, soybean, winter wheat
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