Wheat Sales Rebound
Lower prices and freight rates entice buyers.
Bryce Knorr
Published: Oct 2, 2008
After faltering the previous week, sales of U.S. wheat are on the rising, according to USDA's weekly export report released Thursday. Total wheat sales reached 24.7 million bushels, more than double the previous week's level. With shipments also running strong, wheat is well on the way towards meeting USDA's forecast for the marketing year, which could lead the agency to up its forecast in next week's monthly supply and demand report.
Sales of hard red winter wheat led the lineup, taking more than 60% of the total. Buyers appeared to be scattered around the world, suggesting good demand for U.S. wheat — if the price is right.
Sales of corn and soybeans were a bit disappointing. Corn sales totaled 22.4 million bushels for the week. That was above trade guesses and last week's total, but remains under the weekly rate needed to meet USDA's forecast for the marketing year. Shipments also fell behind the projected weekly rate, which could lead the government to cut its export forecast ultimately.
On a positive note for corn, Japan bought 9 million bushels of the week's total. Sales to the largest destination for U.S. corn have lagged so far this marketing year.
Soybean sales of 17.3 million bushels were above the forecast USDA rate but fell below trade guesses. And shipments remain very light at 4.4 million bushels, despite the government's assertion that old crop carryover was much larger than anticipated.
China was the leading destination for soybeans, picking up 11.7 million bushels of new purchases.
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Weekly Export Sales (million bushels) |
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AS OF WEEK ENDING |
9/25/08 |
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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 |
24.7 |
14.7 |
10.8 |
6.1 |
24.0 |
14.6 |
60% |
44% |
38% |
28% |
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Corn |
22.4 |
19.7 |
21.6 |
31.6 |
31.7 |
45.8 |
26% |
21% |
4% |
5% |
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Soybeans |
17.3 |
23.0 |
22.5 |
14.4 |
4.4 |
20.6 |
37% |
28% |
1% |
2% |
Source: USDA, Reuters
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Tagged: usda, wheat, soybeans, soybean, winter wheat
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