It's New Year's Eve in the wheat market, but don't expect much of a celebration. News that GMO white wheat surfaced in Oregon put new business off the PNW on hold.
Today's export sales report, released a day later than normal due to Memorial Day, showed 4.5 million bushels of 2012 white wheat sales still on the books but unshipped as of last Thursday. Most of that business was headed for Asia, where it's typically used for noodles. Another 27.8 million bushels of new crop sales are ordered, with Japan, China, the Philippines and Guatemala all signing for at least one cargo.
White wheat is expected to account for 17% of total 2012 crop wheat exports, according to USDA's current forecast. June basis for white wheat was unchanged to down 21 cents on Thursday, with deferred quotes seeing less of a hit. Buyers are stepping back from the market until seeing results of tests to determine if the GMO wheat entered the supply chain.
Net new bookings of 2012 wheat totaled just 1.3 million in the latest week, a marketing year low, with cancellations of hard red winter and spring wheat noted. There are around 58 million bushels of total unshipped sales that could be rolled to new crop, about average for this time of year.
Old crop soybeans sales also were negative due to cancellations, as China washed out 7.6 million bushels, a little more than previously reported. Big new crop purchases by China took the total for the week to 27.8 million bushels, down from last week but above trade expectations.
Sales of 2012 crop corn were also slow as expected, totaling 3.4 million bushels. China and unknown destinations were big buyers of new crop, taking even more than previously reported under USDA's daily reporting system for large purchases. That swelled total net new bookings for the week to 34.5 million bushels in line with trade guesses. Shipments of 14 million bushels were a little less than the rate forecast by the government for the rest of the marketing year.