Market News

Another strong week for corn exports

It was a mixed week for grain and oilseed export sales. According to the USDA, corn and soybean oil sales for the week ending July 9 were larger than expected, wheat and soybeans were inside projections and soybean meal was below pre-report estimates. ADM’s Dan Zwicker called the numbers “very strong” but said that was expected.

Wheat came out at 422,500 tons (15.5 million bushels), down 28% from the week ending July 2. The top buyer was Nigeria at 243,500 tons. Still fairly early in the 2009/10 marketing year, wheat sales are 197.4 million bushels, compared to 390.0 million early in 2008/09.

2008/09 corn was reported at 699,700 tons (27.5 million bushels), 7% lower than the previous week and 17% below the four week average. The big purchasers were Japan (281,400 tons) and Mexico (200,400 tons), while unknown destinations canceled on 380,800 tons. With the end of the 2008/09 about a month and a half away, corn sales are 1.798 billion bushels, compared to 2.390 billion late in 2007/08. Sales of 468,000 tons (18.4 million bushels) for 2009/10 delivery were mainly to Mexico (203,100 tons).

Old crop soybeans were placed at 134,200 tons (4.9 million bushels), 53% less than the prior week and 18% under the four week average. A little less than half of the total was bought by China (111,200 tons). Also nearing the end of the current marketing year for soybeans, cumulative sales are 1.266 billion bushels, compared to 1.131 billion towards the completion of 2007/08. Sales of 550,500 tons (20.2 million bushels) for 2009/10 delivery were primarily to China (525,000 tons).

Soybean meal was pegged at 62,600 tons, up substantially from the week before and 49% higher than the four week average. The main purchaser was Guatemala (37,800 tons), while Denmark canceled on 33,000 tons. For the marketing year to date, soybean meal sales are 6,717,400 tons, compared to 7,274,200 a year ago. Sales of 4,300 tons for 2009/10 delivery were mostly to Canada (2,100 tons).

Soybean oil came out at 48,100 tons, down from the previous week but up from the four week average. Just about half was picked up by unknown destinations (23,000 tons). 2008/09 soybean oil sales are 779,100 tons, compared to 1,077,500 in 2007/08. Sales of 42,000 tons for 2009/10 delivery were to unknown destinations.

Net beef sales totaled 4,700 tons. The listed purchasers were Mexico (1,500 tons), Canada (1,200 tons), Hong Kong (600 tons), Vietnam (600 tons), South Korea (300 tons) and Taiwan (200 tons).