Market News

Weekly corn exports solid

It was a mixed week for grain and oilseed exports according to the USDA. Combined old and new crop sales of corn, soybean meal and wheat for the week ending May 28 were within pre-report estimates while soybeans and bean oil were below expectations, with ADM’s Dan Zwicker calling soybean sales “a little disappointing.”

2008/09 wheat sales came out at 88,400 tons (3.2 million bushels), down 15% from the week ending May 21 and 27% lower than the four week average. The top purchaser was Indonesia at 38,500 tons. 2008/09 wheat sales are 978.5 million bushels, compared to 1.249 billion late in 2007/08. The 2008/09 marketing year for wheat officially ended June 1 so any old crop sales made in the last couple days of the marketing year will show up in next week’s report. Sales of 177,000 tons (6.5 million bushels) for 2009/10 delivery were primarily to Peru (40,000 tons) and Mexico (34,100 tons).

Old crop corn was reported at 604,500 tons (23.8 million bushels), 20% less than the previous week and 19% below the four week average. The two main buyers were Japan (213,900 tons) and Mexico (161,900 tons). With around three months left in the current marketing year, corn sales are 1.610 billion bushels, compared to 2.307 billion a year ago. Sales of 54,300 tons (2.1 million bushels) for 2009/10 delivery were mostly to unknown destinations (25,400 tons).

Soybeans had a net reduction of 24,000 tons (900,000 bushels) as a handful of sales including 85,000 tons to Turkey were offset by a fairly large cancellation from China (112,600 tons) along with a couple of other smaller cancellations. So far this marketing year, soybean sales are 1.240 billion bushels, compared to 1.103 billion this time last year. Sales of 60,500 tons (2.2 million bushels) for 2009/10 delivery were mainly to unknown destinations (60,000 tons).

Soybean meal was placed at 142,400 tons, 27% below the prior week and down 29% from the four week average. The primary purchaser was Venezuela (53,000 tons). Cumulative sales for the current marketing year are 6,416,300 tons, compared to 6,710,100 in 2007/08. Sales of 17,300 tons for 2009/10 delivery were primarily to Honduras (13,200 tons).

Soybean oil was pegged at 3,900 tons with sales to Algeria (3,200 tons) and Guatemala (800 tons) and a cancellation by Mexico (400 tons). 2008/09 bean oil sales are 686,400 tons, compared to 1,013,700 in 2007/08.

Net beef sales totaled 7,400 tons. The reported buyers were Mexico (4,100 tons), Canada (1,200 tons), Japan (1,000 tons) and the Netherlands (500 tons).