Market News

A very strong week for new crop soybean exports

It was a very strong week for grain and oilseed export sales, especially for soybeans. According to the USDA soybean sales for the week ending July 30 were larger than expected, bean meal sales were below estimates and corn, wheat and soybean oil were within pre-report projections.

Wheat was reported at 552,800 tons (20.3 million bushels), down 4% from the week ending July 23 but up 15% from the four week average. The biggest buyer was Nigeria at 102,500 tons while unknown destinations canceled on 51,600 tons. Fairly early in the 2009/10 marketing year, wheat sales are 251.4 million bushels, compared to 464.2 million in 2008/09.

2008/09 corn came out at 422,800 tons (16.6 million bushels), 8% less than the previous week and 37% below the four week average. The top purchaser was Japan at 292,300 tons while unknown destinations canceled on 305,600 tons. Nearing the end of the 2008/09 marketing year, corn sales are 1.863 billion bushels, compared to 2.419 billion late in 2007/08. 2009/10 sales of 729,200 tons (28.7 million bushels) were mostly to Mexico (145,000 tons).

2008/09 soybeans were placed at 494,500 tons (18.2 million bushels), sharply higher than both the prior week and the four week average. China bought the vast majority of the total at 405,000 tons. Also towards the end of the current marketing year, soybean sales are 1.305 billion bushels, compared to 1.162 billion a year ago. Sales of 2,413,300 tons (88.7 million bushels) for 2009/10 delivery were also mostly to China (2,317,000 tons).

Old crop soybean meal had a net reduction of 57,600 tons following cancellations by the Philippines and Australia. So far this marketing year, bean meal sales are 6,985,700 tons, compared to 7,434,000 this time last year. Sales of 160,000 tons for 2009/10 delivery were mostly to the Philippines (115,000 tons).

Old crop soybean oil sales were a new marketing year high at 80,900 tons, mainly to Morocco (28,000 tons) and unknown destinations (25,000 tons). 2008/09 bean oil sales are 900,100 tons, compared to 1,104,500 in 2007/08. Sales of 1,200 tons for 2009/10 delivery were to Mexico.

Net beef sales totaled 7,100 tons. The reported buyers were Mexico (3,700 tons), Canada (1,200 tons), Japan (700 tons), Taiwan (500 tons) and South Korea (400 tons).