WEEKLY EXPORT REPORT: Corn, wheat export increases lift marketsWEEKLY EXPORT REPORT: Corn, wheat export increases lift markets
Old-crop soybeans sales drop, but new-crop sales rise sharply.
April 28, 2016
Export sales of old-crop corn of 85.1 million bu. marked a marketing-year high and topped trade forecasts as buyers from Asia and Latin America snatched up cargoes, possibly due to a lack of supplies from South America.
New-crop corn sales of 17.3 million bu. also topped forecasts in a Reuters poll, as did old-crop and new-crop wheat sales. Old-crop soybean sales were down for the week at 8.3 million bu., but new-crop sales more than doubled, at 26.5 million bu., led by Mexico and China.
“A lack of supplies out of South America is helping, as are worries about the second crop in Brazil,” Bryce Knorr, Farm Futures senior grain analyst, said of the corn sales. “All the talk about La Nina may also be stimulating some coverage of new-crop needs by end users around the world who don’t want to be caught short.”
Old-crop soybean sales of 8.3 million bu. were down 45% from a week earlier but still easily exceeded the pace needed to meet the U.S. Department of Agriculture’s annual forecast. Mexico, Bangladesh and Indonesia were the leading buyers. New-crop business of 26.5 million bu. was led by China, unknown destinations and Indonesia.
Old-crop wheat sales of 12.9 million bu. and new-crop business of 16.7 million bu. were both up from a week ago and better than expected. Mexico, Taiwan and Japan led old-crop buyers, while unknown destinations, the Dominican Republic and Guatemala led new-crop business.
Chicago, Ill., corn and wheat futures moved higher after the export report and soybeans trimmed losses. At the close of the overnight session, May corn futures were up 4 cents/bu., and July was up 4.25 cents/bu. May soybeans were down 0.75 cent/bu., and July was down 1.25 cents/bu. May soft red winter wheat was up 5.5 cents/bu., and July was up 6.25 cents/bu. May hard red winter wheat was up 3 cents and July up 3.25 cents/bu.
Soybean meal export sales of 209,600 metric tons were up 59% from a week ago, with unknown destinations, Mexico and Guatemala as the top buyers. New-crop sales of 63,800 mt were up sharply from a week earlier, led by unknown destinations, Ecuador and Canada.
Sorghum sales of nearly 2 million bu. went to unknown destinations and Mexico.
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