Rumors about the soybean market roiled prices this week. First, futures jumped on reports China was back in the market for old crop from the U.S., despite its recent spate of cancelled deals out of both the U.S. and Brazil. Next came rumors it was the U.S. that was importing soybeans, sending prices lower.
Today came hard facts from USDA, with items for both bulls and bears. So far, the report doesn't seem to be moving prices much.
The agency confirmed China was cancelling more old crop deals, with another 10.2 million bushels of previous purchases taken off the books. That resulted in a negative old crop sales total for the second straight week.
China did ship out 4.9 million bushels in the latest week, helping keep actual shipments closed to the rate forecast by USDA for the rest of the marketing year. And the agency's weekly report said China bought 42.3 million bushels of new crop beans, helping bring the total 2013 total to 49.3 mil bu. Then, in its daily reports for large purchases, USDA said China booked another 10.7 million bushels of new crop.
China's new crop purchases are keeping total U.S. sales of 2013 crop running at a record level for this early in the season. The country is still growing, albeit at a slower pace, keeping demand improving.
China also showed up on the list of new crop corn buyers, taking 11.8 million bushels. Total new bookings were 38.8 million bushels, and 13 million bushels of that was old crop, above the rate forecast by USDA for the rest of the marketing year.
The old crop wheat marketing year is in its final month, but net sales still came in at 8 million bushels. Total old and new crop sales were a healthy 26.3 million bushels. But the big news came in actual shipments. At 31.1 million bushels they were a marketing year high, though the total was still a little behind the rate needed to reach USDA's current forecast for the 2012 crop year that ends May 31. That's an indication that USDA may be forced to lower its projection for sales in next week's supply and demand report.