Wheat Leads Export Parade
Buyers can't resist a bargain, as sales pace remains very strong.
Bryce Knorr
Published: Sep 18, 2008
Wheat export sales topped 25 million bushels in the latest week, the only bright spot in an otherwise disappointing summary released this morning by USDA.
International buyers continue to scoop up wheat, with a host of nations represented in the lineup. Some, are regular customer Japan, while other countries are trying to rebuild supplies drawn down by this year's run to record high prices. But new faces are showing up too, including more business to Iran, which is suffering from a drought that's cut production in much of the Middle East this year.
The only downer for the wheat trade lately has been Egypt, which ignored the U.S. in its recent tenders. Business with Japan could slow temporarily, as that country reviews procedures following a scandal over tainted rice.
Corn exports remain off to a slow start, with just 13.7 million bushels sold in the latest week. Strong early sales made during the run to record prices this summer have so far convinced end users to back away from the market until more is known about the size of the crop.
U.S. export prospects could get a boost from a smaller crop in Argentina, where weather and politics reduced acreage. In addition, the government closed its corn export registry again today, trying to ration supplies.
Soybean sales at 15.1 million bushels were in line with USDA's forecast for the new marketing year, but shipments remain slow in the wake of hurricanes Gustav and Ike. Just 4.7 million bushels were shipped last week, as supplies in position remain very tight due to low old crop carryout and harvest delays caused by the storms in the South.
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Weekly Export Sales (million bushels) |
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AS OF WEEK ENDING |
9/11/08 |
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Actual |
Est. |
Last Week |
USDA F'cast |
Export Ship-ments |
USDA F'cast |
% of USDA Commit. |
Ave. |
% of USDA Ship-ments |
Ave. |
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Wheat |
25.1 |
16.5 |
16.8 |
8.3 |
23.9 |
16.1 |
59% |
42% |
36% |
26% |
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Corn |
13.7 |
16.2 |
14.7 |
32.5 |
20.9 |
45.8 |
24% |
19% |
2% |
3% |
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Soybeans |
15.1 |
18.4 |
16.9 |
15.4 |
4.7 |
21.2 |
34% |
25% |
1% |
1% |
Source: USDA, Reuters
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Tagged: usda, wheat, soybeans, soybean, Harvest
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