Concern about the sluggish start to the soybean sales season this fall got little fresh news to allay those fears in this morning’s weekly report from USDA.
The government said net new bookings of soybeans totaled just 7.7 million bushels, down from last week’s anemic numbers and only a third of pre-report guesses. China was the largest buyer, but even its deals involved switches from beans labeled as optional origination.
While China as expected aggressively loaded out previous purchases again this week, the slow start to the sales seasons increases the potential for USDA to lower its forecast for the 2011 crop marketing year when supply and demand estimates are updated Nov. 9. Farm Futures is already predicting increased carryout, believing weaker exports will more than offset slightly lower production.
Corn sales beat both trade guesses and the weekly rate forecast by USDA for the rest of the marketing year, though the total was less than an impressive 24.5 million bushels. Japan was the leading buyer but Cuba also took 5.9 million bushels, and China was also in for a load.
Wheat sales barely beat last week’s low numbers, but the total, 11.8 million bushels, were in line with USDA’s forecast rate for the rest of the marketing year. Shipments were strong at 23 million bushels, with total commitments suggesting USDA is too low on its current total. That number could be adjusted upward next week.
Still, competition out of the Black Sea remains fierce, limiting most areas to small sales. Nigeria was the biggest buyer, taking 3.9 million bushels.
For the complete export report, click here.