Deciphering the first export sales report of a new marketing year always takes a little extra work. This year's start for corn and soybeans is impressive, following the smaller crops that limited business for the past year.
Soybean commitments as expected are off to a record start, with deals covering more than 800 million bushels already on the books. That amounts to 58% of USDA's Aug.12 forecast for the entire marketing year. Net new bookings this week were somewhat sluggish, however, netting out to 17.6 million bushels. China and unknown destinations were again the top buyers.
Total exports during the 2012 marketing year were down only 1% from the previous year, a testament to strong demand from China that's expected to continue in the coming year.
Sales during the marketing year ended Aug. 31 for corn were far different, falling 52% from the previous year, according to USDA. Another net reduction in 2012 crop business was made in today's report, lowering the total of net new bookings for the year to 13.1 million bushels, with Mexico the leading buyer. Total sales of 2013 corn are off to a good start at 503 million, 41% of USDA Aug. 12 forecast for the crop year. That's not a record, but it is twice the long-term average for the start of a marketing year.
The wheat marketing year began June 1, so the 2013 year is already a quarter finished. Total wheat commitments are already 55% of USDA's Aug. 12 forecast for the marketing year, well ahead of the average pace. Net new bookings in the latest week, which included a smattering of 2014 crop deals, came in at 20.3 million bushels. Brazil and Nigeria continue to be leading buyers, helping boost sales of hard red winter wheat, with the Philippines also taking a couple of loads in the latest week.
Wheat shipments are also brisk, as buyers waste no time taking delivery of previous purchases. That includes China, which shipped out 11.1 million bushels last week. It was a heavy buyer of soft red winter wheat early in the summer.