Soy Demand to Stay Firm
However, China appears to be focusing on new crop purchases.
Bryce Knorr
Published: May 14, 2009
Soybean exports remained seasonally strong in the latest week, though demand from China appears to be focusing more on new crop purchases.
China took around 41% of the week's 27.7 million bushels in net new bookings, buying more new crop beans last week. In addition, USDA today announced the sale of 4.4 million more bushels to China this morning under its daily reporting system.
USDA raised its forecast for soybean exports on Tuesday, but traders worry about the potential for Chinese cancellations. However, old crop supplies remain tight, due to lack of production in drought-plagued Argentina. Both sales and shipments remain ahead of the pace needed to reach the government's new targets.
In a separate report this morning, the National Oilseed Processors Association reported its members crushed 134.1 million bushels of soybeans in April, above trade guesses. While the figure again was done from last year, the gap was a little less than previously noted, thanks to improving crush margins.
Corn exports were also strong this week at 46.6 million bushels of old and new crop business, with Japan leading the list of buyers. Shipments of 50.1 million bushels were a marketing year high.
Wheat sales continue to wind down with the start of the 2009 marketing year just three weeks away. Sales totaled 8.6 million bushels, but new crop bookings remain very slow.
For the complete export report, CLICK HERE.
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Tagged: usda, soybean, wheat, soybeans, Drought
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