Buyers Turn Cautious In Export Market

Buyers Turn Cautious In Export Market

Mexican new crop sale announced Thursday morning takes some of the bearish edge off lower numbers.

Foreign customers have turned cautious, apparently waiting to see how threatening spring weather plays out across the northern hemisphere. Total U.S. export sales for the latest week released this morning by USDA were mostly lower.

However, the agency also announced the sale of 6.6 million bushels of new crop corn to Mexico under its daily report system, helping boost the mood a little. USDA’s total weekly sales came in at 30.7 million bushels, a little above trade guesses. The total included two cargoes to China.

 However, shipments of 37.6 million bushels remain below the weekly rate forecast by USDA for the rest of the marketing year, suggesting the agency’s current estimate could be too high.

Wheat sales of 15.9 million included a net reduction in old crop bookings, as end users are likely to roll a lot of positions forward into new crop over the next week as the marketing year ends. Buyers of new crop continue to take one or two loads, keeping totals small.

Soybean sales at 6.2 million bushels were little changed from last week and a little below trade guesses. China took one load in the shipments column, but otherwise did no new buying.

For the complete export report, click here.

Weekly Export Sales (million bushels)

AS OF WEEK ENDING

5/19/11

Actual

Last Week

Trade Est.

USDA F'cast

Export Ship-ments

USDA F'cast

% of USDA Commit.

Ave.

% of USDA Ship-ments

Ave.

Wheat

       15.9

    29.4

    20.2

    (27.9)

29.0

93.7

95%

90%

71%

75%

Corn

       30.7

    45.3

    27.6

     14.8

37.6

45.8

89%

88%

66%

71%

Soybeans

         6.2

      6.1

      8.7

       1.9

15.1

13.5

98%

95%

88%

86%

Source: USDA, Reuters


TAGS: USDA
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