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Low Freight Costs Boost Export Shipments

While export sales held their own this week, actual shipments out of the U.S. reached a furious pace, with buyers taking delivery of corn, soybeans and wheat at a very brisk clip to take advantage of lower shipping rates.

Japan led the list of corn buyers, with regular customers in Asia and the Americas joined by a smattering of Middle East importers. Total new sales hit 32.5 million bushels of old and new crop, beating trade guesses. But the real highlight was shipments of 47.8 million bushels, which helped close the gap a little between year-to-date movement and the rate forecast by USDA for the rest of the marketing year.

Japan also was the leading buyer of U.S. wheat, which enjoyed sales of 17.8 million bushels, down from the previous week but better than estimates. One unusual buyer showed up on the list – China – which has been buying high quality wheat from originations around the world to replace reserves going out of condition. Wheat shipments were also good, helping both sales and shipments top the percentages normally seen as the last quarter of the market year unfolds. That ups the odds USDA won't lower its estimate of export sales even below current levels, which are the lowest in some 40 years.

USDA also today announced the sale of 5.1 million bushels of hard red winter wheat to Nigeria, which has stood out as an active buyer this year.

Soybean sales were also decent this week, with old and new crop purchases exceeding 14 million bushels. Shipments were a very strong 38 million bushels, taking the year-to-date total to 87% of the amount forecast by USDA for the 2009 crop. More than two thirds the business was new crop, with China again buying.

For the complete export report, click here.