Market News

Corn, soybean and wheat exports top estimates

It was a very strong week for grain and oilseed export sales. According to the USDA, corn, soybeans and wheat sales for the week ending July 2 were larger than expected. ADM market analyst Dan Zwicker says the numbers “show the world interest in U.S. commodities.”

Wheat came out at 584,200 tons (21.5 million bushels), up from the week ending June 27. The top buyers were Japan (87,500 tons) and Taiwan (84,400 tons). Still fairly early in the 2009/10 marketing year, wheat sales are 181.8 million bushels, compared to 362.5 million in the beginning stages of 2008/09.

Old crop corn was reported at 749,200 tons (29.5 million bushels), down 35% from the prior week and 10% lower than the four week average. The biggest purchaser was Japan at 254,600 tons. Unknown destinations did cancel on 112,300 tons. Nearing the end of the 2008/09 marketing year, corn sales are 1.771 billion bushels, compared to 2.376 billion late in 2007/08. Sales of 415,400 tons (16.4 million bushels) for 2009/10 delivery were mainly to unknown destinations (263,200 tons).

Old crop soybeans were pegged at 287,000 tons (10.5 million bushels), 48% higher than the previous week and up considerably from the four week average. China was far and away the leading buyer with 283,500 tons; unknown destinations canceled on 98,100 tons. Also towards the end of the 2008/09 marketing year, soybean sales are 1.261 billion bushels, compared to 1.129 billion a year ago. Sales of 941,600 tons (34.6 million bushels) for 2009/10 delivery were mostly to China (830,000 tons).

Soybean meal came out at 18,400 tons, a decrease from the week before and 67% less than the four week average. The top purchasers were Mexico (8,300 tons) and Canada (8,200 tons). For the marketing year to date, soybean meal sales are 6,654,800 tons, compared to 7,213,500 last year at this time. Net sales of 12,500 tons for 2009/10 delivery were to the Dominican Republic (16,000 tons) with Jamaica cancelling on 3,600 tons.

2008/09 soybean oil had a net reduction of 60,200 tons following a cancellation of 83,000 tons by unknown destinations. 2008/09 soybean oil sales are 730,900 tons, compared to 1,071,700 in 2007/08. Sales of 98,000 tons for 2009/10 delivery were to unknown destinations.

Net beef sales totaled 4,500 tons. The reported buyers were Mexico (1,000 tons), Japan (900 tons), Canada (800 tons) and Vietnam (500 tons).