Strong Export Sales Noted Across the Board
China continues to be buyer of U.S. commodities.
Bryce Knorr
Published: Jun 17, 2010
Everybody loves a sale, and when prices made new lows last week buyers hit the international mall with a vengeance, scooping up large quantities of corn, soy and wheat in volumes that far exceeded trade guesses.
China was again the big story, on several fronts. USDA confirmed the sale of another 4.725 million bushels of old crop, with total old and new crop sales for the week totaling 48.3 million bushels. China joined regular customers from Asia, the Americas and the Middle East, who jumped in when prices made new lows ahead of the bullish June 10 USDA report, which cut old crop ending stocks.
China, as expected, also accounted for most of the soy business as well. Old crop soybean sales were actually negative for the week, thanks to large cancellations by Japan. But that was more than offset by Chinese new crop soybean purchases. The USDA tally sheet revealed another 4 million bushels were booked, in addition to the 8.8 previously announced under the agency’s daily reporting system. That brought the total for the week to 21.6 million bushels, doubling trade guesses.
A large, previously announced sale of soybean oil to China helped the product enjoy an old crop marketing year high. China is embroiled in a trade dispute with Argentina and has effectively banned purchases from the large producer.
China wasn’t on USDA’s list of large wheat buyers, but that commodity made headlines as well in today’s report, after bouncing off a series of new contract lows. Total sales topped 35 million bushels, doubling the rate needed weekly to reach USDA’s forecast for the marketing year. Buyers from Asia, the Americas and Africa were noted, with customers finally beginning to purchase significant volumes. That could indicate a change in mindset among buyers, with more production problems around the world emerging this week.
For the complete export report, click here.
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Weekly Export Sales (million bushels)
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AS OF WEEK ENDING
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6/10/10
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Actual
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Last Week
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Trade Est.
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USDA F'cast
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Export Ship-ments
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USDA F'cast
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% of USDA Commit.
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Ave.
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% of USDA Ship-ments
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Ave.
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Wheat
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35.3
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17.8
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10.1
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14.2
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35.3
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17.6
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16%
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18%
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2%
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2%
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Corn
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48.3
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33.7
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33.5
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10.1
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42.2
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46.5
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95%
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91%
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74%
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76%
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Soybeans
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21.6
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10.9
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14.7
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0.1
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7.8
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9.9
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98%
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99%
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93%
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93%
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Source: USDA, Reuters
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Tagged: usda, wheat, soybean, soybeans
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