Russian Export Ban Fuels U.S. Hopes
Putin extends prohibition until 2011 harvest is complete.
Bryce Knorr
Published: Sep 2, 2010
Hopes for more U.S. grain sales got a shot in the arm today, when Russian Prime Minister Vladimir Putin apparently announced an extension of the country’s export ban until the 2011 harvest is complete. Though wording of news reports was a bit vague, traders appeared to taking the news as a sign demand for U.S. crops should continue. The initial ban was set to run only until Dec. 31.
Indeed, yet another strong week of export sales should keep demand on the front burner for bulls, with only soybeans disappointing a bit.
Corn sales enjoyed another strong week, a slight reduction in old crop purchases offset by big new crop deals that brought the weekly total to 67.5 million. The biggest buyers were unknown destinations, followed by Japan, keeping the precise nature of the demand murky. China bought a little 2009 crop and took shipments of 4.5 million bushels more.
Total new crop corn sales are running at the best level since 2007, as the 2010 marketing year begins this week.
USDA today also announced the sale of 4.725 million bushels of corn and 3.75 million bushels of soybeans to Egypt under its daily reporting system for large purchases.
Wheat sales and shipments also topped expectations, with 37.6 million bushels of net new sales in that latest week, just under the previous week’s figures. Weather problems around the world are shifting demand somewhat: The biggest buyers in the latest week were Nigeria and Turkey, with Egypt also toward the top of the list. While buyers earlier in the summer were taking only small loads, lack of product out of the Black Sea is forcing them to step up the scale of their deals, with top buyers now seeking multiple cargoes.
Shipments of wheat were a marketing year high at 37.7 million bushels as well, as a slow start to the season is over.
Soybeans, perhaps, were the only disappointment this week, though the total, 22.6 million bushels, was decent. Most of the deals were for new crop with China and Thailand leading the pack of buyers. Sales of 2010 beans came in at a record clip as the marketing years change, suggesting demand could remain stronger than forecast by USDA.
For the complete export report, click here.
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Tagged: usda, soybeans, wheat, Extension, Harvest
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