Wheat Exports Pick Up
Soybean sales down from recent torrid pace but still respectable, corn not so much.
Bryce Knorr
Published: Nov 12, 2010
Traders were bracing for a weak export sales tally for wheat today, but weekly totals reported by USDA were a pleasant surprise, at least for some classes.
Total sales in the latest week topped 30 million bushels, doubling trade guesses, with multiple buyers in Asia and the Americas buying one or more cargoes apiece. Hard wheat continues in good demand, accounting for more than 85% of the weekly total because supplies out of Canada and Europe are down. White wheat sales were also decent, helped by dry weather that’s cutting production in Western Australia.
Soft red winter wheat remains the laggard of the complex, with just 350,000 bushels committed in the latest week. USDA Tuesday upped its forecast for hard wheat exports for the marketing year, lowering its projection of soft red winter wheat totals.
Soybean sales were lower again this week, dropping to 34.2 million bushels. That was less that trade guesses and some of the totals seen recently, but still a good number compared to past years. USDA upped its sales forecast for the marketing year in Tuesday’s monthly crop report, thanks to the record pace of new crop sales. China continues to dominate the trade, accounting for more than 75% of the weekly total.
Corn sales beat expectations, but trade guesses set a low bar coming into today’s report, which was delayed by the Veterans Day observance. Net new bookings for the week were just under 25 million bushels. Japan grabbed almost half the total, with South Korea also taking a couple of cargoes. South Korea has actively sought alternatives to U.S. corn, but appears to be struggling, passing on tenders today for South American and South African originations and turning instead to feed wheat.
For the complete export report, click here.
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Tagged: wheat, usda, winter wheat, accounting, soybean
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