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WEEKLY EXPORT REPORT: Sales surge for corn, soybeans, wheat

Big daily sale to China drives new-crop soybean business.

Foreign buyers stocked up on corn, soybeans and wheat this past week, as purchases of all three were up sharply from the prior week and topped trade forecasts.

A bulge in new-crop soybean business in the U.S. Department of Agriculture’s weekly export report had been expected after USDA last week announced the sale of nearly 47.8 million bu. to China via its daily reporting system for big sales.

A delegation of Chinese buyers last week signed deals to buy more than 460 million bu. of U.S. soybeans. A day later, USDA reported the sale of 47.8 million bu.

Old-crop soybean sales of nearly 15.1 million bu. were up 80% from the prior week and kept annual sales above USDA’s forecasted amount. Unknown destinations, Mexico and China led buyers. New-crop sales of 56 million bu. were up sharply from the prior week, with China the largest buyer, followed by unknown destinations and Costa Rica.

Old-crop corn sales of 18.4 million bu. were more than double the prior week but went to the usual customers in Asia and Latin America. Sales were led by Japan, Mexico and Peru. The sales easily topped the pace needed to meet USDA’s annual forecast. New-crop sales of nearly 8.4 million bu. topped forecasts in a Reuters poll, with Mexico, unknown destinations and Colombia as the lead buyers.

Wheat sales of 24.6 million bu. were led by the Philippines, South Korea and Mexico.

“Wheat is the surprise, showing end users are starting to become concerned about supplies of high-quality wheat. U.S. hard red winter wheat in the cash market is still cheap, and protein appears better than early indications,” Farm Futures senior grain analyst Bryce Knorr said of the sales. “Soybeans were expected due to the Chinese delegation.”

Chicago, Ill., corn futures rose 1-2 cents after the export report and before the overnight session closed, while the soybean and wheat markets had little movement after the report.

Chicago Board of Trade (CBOT) August soybeans closed the overnight session up 6-1/2 cents, and September corn was up 5 cents. CBOT September soft red winter wheat was down 1-1/4 cents, and Kansas City, Mo., September hard red winter wheat finished the overnight session down 1 cent. Spring wheat for September closed 5 cents lower.

Soybean meal export sales of 41,400 metric tons were up sharply from the prior week and matched trade forecasts. Venezuela, Colombia and Canada led the buyers. New-crop business of 75,900 tons was down 44% from a week ago and matched forecasts, with the Philippines, Canada and Mexico as the leading buyers.

Soybean oil sales of  25,400 metric tons were up 57% from the prior week and were on the high end of the trade forecasts. The Dominican Republic, Guatemala and Mexico were the leading buyers.

Sorghum sales of 2.24 million bu. were down slightly from a week ago and went to China. New-crop sales of nearly 2.6 million bu. went to unknown destinations.

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