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Soybean Sales Continue To Wind Down

USDA had more trouble with its weekly export sales report this morning, with computer glitches delaying release. When the numbers finally trickled out they contained few surprises — or bits of bullish news for grain markets already under pressure.

The government data confirmed that old crop sales to China are winding down. Net new bookings for old crop totaled 1.4 million bushels, but no new business was actually involved, because the gain resulted from the switching of sales from unknown destinations offsetting cancellations. China did pick up a load of new crop beans, but the total bookings for the week were 8.9 million bushels, in line with trade guesses.

Corn sales were also as expected at 36.9 million bushels, keeping the pace of new business ahead of the rate forecast by the government for the rest of the marketing year. Japan took about half the old crop business, with a smattering of other buyers from Asia, Africa and the Americas. Actual shipments in the latest week topped 40 million bushels, helping to keep basis in the country firm.

Wheat sales were a little better than expected at 13.5 million bushels, but business remains relatively slow. In addition to regular customers, Brazil bought almost 1 million bushels, as the large importer is scrambling to replace drought-ravaged supplies from Argentina.

Hopes for U.S. sales to Egypt were dashed before the close, when Egypt bough a load of French wheat. Egypt has had troubles with recent shipments of Russian grain, giving the U.S. a new shot at the important market, but there's still plenty of old crop wheat from closer origins in the market.

For the complete export report, click here.