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They're Back! China Buys More Beans

Chinese demand ramped up again last week.
Compiled by staff 
Published: Oct 22, 2009

Chatter the last few weeks focused on whether huge early season purchases sated China's appetite for U.S. soybeans, with some suggesting the world's largest buyer was turning its attention to new crop purchases from South America. While the tide indeed may turn, it didn't happen last week, with Chinese demand ramping up again.

 

China accounted for 75% of a big week of 36.3 million bushels in sales, far exceeding trade guesses. Thanks to the strong pace, almost two-thirds of USDA's total export forecast for the year has either been shipped or sold.

 

Wheat sales also bettered both trade guesses and the weekly rate needed to meet USDA's forecast for the marketing year. The 25.2 million bushels of net new business was spread around a variety of buyers from Asia, the Americans and the Middle East – a key market where the U.S. faces tough competition.

 

Corn sales, by contrast, were clearly disappointing, as buyers appear to be resisting higher prices at a time when low-ball offers usually succeed. Total bookings slipped under 10 million bushels, with Japan accounting for the lion's share of the business.

 

For the complete export report, click here.

 

Weekly Export Sales (million bushels)

 

 

 

 

 

 

 

AS OF WEEK ENDING

10/15/09

 

 

 

 

 

 

 

 

Actual

Last Week

Trade Est.

USDA F'cast

Export Ship-ments

USDA F'cast

% of USDA Commit.

Ave.

% of USDA Ship-ments

Ave.

Wheat

       25.2

    17.6

    16.5

       8.2

17.3

11.3

52%

53%

34%

37%

Corn

         9.8

    24.9

    27.6

     25.4

32.2

34.6

31%

29%

12%

12%

Soybeans

       36.3

    24.1

    25.7

     14.9

31.5

22.3

63%

40%

7%

9%

Source: USDA, Reuters

 

 

 

 

 

 

 

 

 



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