More Soybean Cancellations Announced

More Soybean Cancellations Announced

Only part of the scrubbed sales appear to be rolled to new crop as rationing continues.

Cancellations of old crop soybean sales appear to be picking up steam as summer begins, with USDA announcing another likely maneuver to defer delivery today.

USDA reported more apparent rolling of old crop sales to new under its daily reporting system this morning. The agency said the sale of 16.6 million bushels of old crop to unknown destinations was cancelled, with another 11.1 million new crop booked. That comes after a smaller amount announced Monday looked to be rolled forward from China. It was unclear whether Monday’s trade was the same one listed in today’s separate, weekly totals, which include deals through Thursday of the preceding week.

In any event, the washouts on the weekly ledger cancelled out fresh old crop sales, causing the 2010 crop total for the week to be negative. Still, new Chinese buying for 2011 beans helped the weekly tally reach almost 10 million bushels, somewhat below trade guesses.

The machinations in the soybean market take place as the market tries to ration what are expected to be fairly tight old crop supplies at the end of the marketing year, which may have to be stretched further due to planting delays.

Corn sales, meanwhile, were disappointing at 20.9 million bushels, with most buyers other than Japan taking only small amounts. Shipments were much better at 46 million bushels, in line with an aggressive total needed for the rest of the marketing year to reach USDA’s forecast.

Wheat sales of 24.3 million bushels beat expectations and shipments were also good. Japan and Nigeria were the leading buyers and destinations, as traders waited for results of Egypt’s latest tender, due out before the open this morning.

Wheat prices plummeted this week in part due to anxiety over the reemergence of grain out of the Black Sea following last year’s weather problems. Still, Egypt so far has shunned Russian wheat, despite very cheap prices.

For the complete export report, click here.

Weekly Export Sales (million bushels)

AS OF WEEK ENDING

6/16/11

Actual

Last Week

Trade Est.

USDA F'cast

Export Ship-ments

USDA F'cast

% of USDA Commit.

Ave.

% of USDA Ship-ments

Ave.

Wheat

       24.3

    16.7

    18.4

     20.6

24.4

25.3

17%

19%

2%

4%

Corn

       20.9

    35.2

    37.4

     14.8

46.0

48.8

92%

93%

74%

78%

Soybeans

         9.9

      6.8

    14.7

       0.3

6.8

15.0

100%

98%

90%

90%

Source: USDA, Reuters


TAGS: USDA
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