Japan Big Buyer Before Disasters

Japan Big Buyer Before Disasters

Corn sales surged as prices began easing off multi-year highs.

Traders like to say that USDA’s weekly export sales reports always are a glance in the rearview mirror. The data describes what was happening in the previous week, and even in normal times that’s forever in the commodity markets.

Never was that attitude more true than with the summary released this morning. USDA said corn sales surged last week as prices started to retreat from 30-month highs. The big buyer? Japan, which accounted for almost half the old crop sales total.

Net new bookings for the week totaled a very good 52.6 million bushels, doubling trade guesses. While there were no major new shipments reported headed to Japan, trade ideas suggested some already at sea would be diverted, while captains of other vessels were told to go slow to avoid both uncertainty and potential nuclear contamination.

USDA separately today announced the sale of 4.6 million bushels to unknown destinations under its daily reporting system for large purchases.

Wheat sales for the week also beat expectations, totaling 31.6 million bushels. Shipments, however, continue to run behind the pace needed to reach USDA’s forecast for the marketing year, which was lowered in last week’s monthly supply and demand report. Iraq was the big buyer, taking more than half the old crop total. Most of the deals were for hard red winter wheat, which remains in tight supply globally.

Soybeans sales were expected to fall off this week, and they did, even more than anticipated. Net new bookings totaled just 7.9 million bushels, with China only buying a little new crop. Shipments remains strong, however, just under 31 million bushels.

For the complete export report, click here.

Traders like to say that USDA’s weekly export sales reports always are a glance in the rearview mirror. The data describes what was happening in the previous week, and even in normal times that’s forever in the commodity markets.

Never was that attitude more true than with the summary released this morning. USDA said corn sales surged last week as prices started to retreat from 30-month highs. The big buyer? Japan, which accounted for almost half the old crop sales total.

Net new bookings for the week totaled a very good 52.6 million bushels, doubling trade guesses. While there were no major new shipments reported headed to Japan, trade ideas suggested some already at sea would be diverted, while captains of other vessels were told to go slow to avoid both uncertainty and potential nuclear contamination.

USDA separately today announced the sale of 4.6 million bushels to unknown destinations under its daily reporting system for large purchases.

Wheat sales for the week also beat expectations, totaling 31.6 million bushels. Shipments, however, continue to run behind the pace needed to reach USDA’s forecast for the marketing year, which was lowered in last week’s monthly supply and demand report. Iraq was the big buyer, taking more than half the old crop total. Most of the deals were for hard red winter wheat, which remains in tight supply globally.

Soybeans sales were expected to fall off this week, and they did, even more than anticipated. Net new bookings totaled just 7.9 million bushels, with China only buying a little new crop. Shipments remains strong, however, just under 31 million bushels.

For the complete export report, click here.

Weekly Export Sales (million bushels)

AS OF WEEK ENDING

3/17/11

Actual

Last Week

Trade Est.

USDA F'cast

Export Ship-ments

USDA F'cast

% of USDA Commit.

Ave.

% of USDA Ship-ments

Ave.

Wheat

       31.6

    24.1

    18.4

       7.3

25.4

35.7

94%

88%

69%

73%

Corn

       52.6

    30.6

    25.6

     10.6

34.7

20.4

72%

71%

46%

52%

Soybeans

         7.9

    17.3

    14.7

       5.1

30.8

16.4

92%

85%

75%

71%

Source: USDA, Reuters



TAGS: USDA Soybean
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