USDA handed out a mixed round of export sales data in its weekly report, out Thursday morning. Soybeans saw the most upside after old crop sales climbed 34% above the prior four-week average. But wheat sales proved lackluster and old crop corn sales moved sharply lower for the week ending June 13.
“This week’s report continues recent themes and then some,” notes Farm Futures senior grain market analyst Bryce Knorr. “Old crop corn saw very few new bookings as higher prices are rationing demand and turning buyers elsewhere. New crop wheat sales are also slow as the world waits for the harvest to gather steam.”
Corn export sales dropped to just 1.5 million bushels for old crop sales (falling 77% week-over-week) plus another 14.2 million in new crop sales last week, landing on the low end of analyst expectations that ranged between 11.8 million and 35.4 million bushels. Sales to unknown destinations (7.3 million) and Mexico (6.9 million) led the way but were partially offset by reductions from several other countries.
Corn export shipments saw a marketing-year low last week at 15.9 million bushels, with Mexico occupying the top spot at 10.5 million bushels. Other leading destinations included Japan (6.1 million), Saudi Arabia (2.7 million) and Honduras (1.5 million).
Soybean export sales picked up 21.0 million bushels in old crop sales plus another 7.4 million bushels in new crop sales for a total of 28.4 million bushels. China was absent in last week’s mix, with unknown destinations, Egypt, the Netherlands, Thailand and others occupying the top spots. The total reached the high end of trade guesses, which ranged between 7.3 million and 29.4 million bushels.
“U.S. soybean bookings were strong because U.S. originations out of the Gulf are 6% cheaper than Brazil before freight,” Knorr says. “The record old crop bean book will stress the river system as the Upper Mississippi reopens. But new crop bookings are minimal for soybeans due to uncertainty over the U.S.-China trade war.”
China did account for nearly half of soybean export shipments last week, which netted a total of 27.1 million bushels, and remains the leader for all soybean export commitments this marketing year, with 29% of the total. Other top destinations last week included Indonesia, Japan, the Netherlands and Mexico. Total volume topped the prior four-week average by 28%.
Wheat found 6.9 million bushels of new sales for delivery this marketing year. Algeria was the No. 1 destination, with 2.2 million bushels, followed by Yemen, Japan, Mexico and Guatemala. The total fell below expectations, as analysts thought USDA would report between 7.3 million and 18.4 million bushels.
Wheat export inspections reached 15.8 million bushels last week. Indonesia was the No. 1 destination, with 3.1 million bushels. Other top destinations included the Philippines (2.4 million), Mexico (2.2 million) and Iraq (1.9 million).