Importers Flock to U.S. Wheat
Most sales were for hard wheat and durum.
Bryce Knorr
Published: Jul 29, 2010
Sales of U.S. wheat surged last week, as end users finally began quietly booking supplies in the face of widespread cuts in global production. Net new bookings of 33.8 million bushels were the second highest total of the marketing year, which began June 1.
Most of the sales were for hard wheat and durum, not surprising since that’s the primary output from Canada, where a cold, wet spring and heavy summer rains cut sowings and crop prospects. Canada also showed up on the list of buyers, which was led by Japan, Nigeria, the Philippines and Egypt.
The proud new owners of 2010 wheat aren’t scrambling to take delivery, however. Export shipments barely topped 14 million bushels, 25% below the weekly rate needed to meet USDA’s forecast for the marketing year.
Wheat futures have jumped more than 40% in July, the largest monthly surge since the days of the “Great Russian Grain Robbery” in the early 1970s.
Despite the big increase in wheat, soybean sales actually led the ag complex, with total old and new crop purchases pegged at 54.5 million bushels. While most new crop deals from China and “unknown destinations” accounted for most of the business, the total still included 23% of new crop origination. China took the bulk of those beans, too.
USDA today also announced the sale of 20,000 more tons of old crop soybean oil to China under its daily reporting system.
Net new bookings of corn were a little above trade guesses at 37.8 million bushels, with old crop sales 45% of the total. Japan and was the leading disclosed buyer for both 2009 and 2010 corn, with China taking only a token amount of old crop, while another 4.5 million of previous purchases was shipped.
USDA today also announced the sale of 5.7 million bushels to Mexico, most for new crop origination.
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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7/15/10
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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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33.8
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17.8
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12.9
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16.1
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14.1
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19.9
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27%
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28%
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10%
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12%
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Corn
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37.8
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33.7
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35.4
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(8.0)
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37.3
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53.7
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103%
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100%
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86%
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87%
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Soybeans
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54.5
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10.9
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35.8
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(5.7)
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10.1
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13.2
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103%
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103%
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95%
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98%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybean, soybeans, wheat futures
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