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Lower Prices Fuel Export Sales

End users punished by record prices last year aren't beating around the bush to take advantage of the recent collapse in the grain market. Sales of corn, soybeans and wheat in the latest week all exceeded expectations, according to this morning's tally from USDA.

While good readings were expected for corn and soybeans, based on big daily sales, the total for wheat may raise the most eyebrows. Weekly wheat sales came in at 21.5 million bushels, almost twice the trade's guesses, the best effort since late September. In addition to regular customers in Asia and the Americas, buyers included Indonesia and the Philippines. That's an indication that wheat from competitors such as Australia and the Black Sea is less available, with buyers also nervous about potential for an El Nino to disrupt production.

The U.S. has won parts of two recent snap tenders from Egypt, another sign U.S. prices are competitive at lower levels.

For soybeans, China remains the big question mark. While Chinese officials predict imports there will slow in August and September, the world's largest buyer is still picking up old crop — more than 10 million bushels in the latest week. Strong Chinese purchases also helped fuel new crop business. Total net new bookings for the week hit 45.2 million bushels.

Corn sales were again strong at 45.2 million bushels. Japan and South Korea were the big buyers, but there was also interest from smaller customers in the Americas.

For the complete export report, click here.