Export sales of corn and soybeans posted solid gains in USDA’s weekly report on Thursday and topped their respective four-week averages as low prices prompted sales.
In the month of February, Chicago corn futures prices dropped 5% and soybeans dropped 3.3%. In addition, in early March soft red winter wheat futures sank to their lowest since 2010. Those declines have encouraged sales
“China is still buying some soybeans without a lot of large cancellations, and corn business is chugging along after a slow start,’ said Bryce Knorr, Farm Futures senior grain analyst. “Low prices in wheat are attracting buyers around the world. Unfortunately, there are plenty of sellers.”
Old-crop corn sales of 43.2 million bushels were up 18% from the previous week and up 25% from the four-week average with Colombia, Mexico, and Japan the top buyers. The weekly total was at the top-end of trade forecasts in a Reuters’ poll.
Soybean sales of 16.2 million for the 2015/2016 crop were up 70% from the previous week and up 35% from the four-week average, with China again the largest buyer, followed by Mexico, and Indonesia. For the 2016/2017 market year, sales of 77,154 went to Japan.
Wheat sales of about 12.6 million bushels were down 11% from the prior week but 42% from the four-week average, unknown destinations, Mexico and South Korea the leading buyers. There were about 2.4 million in sales of the 2016/2017 crop that went to the Philippines, unknown destinations, Mexico and Italy.
Corn, soybean and wheat futures had little reaction to the export numbers as the crops closed the overnight session with modest gains. Chicago crop futures closed the overnight higher in the May contracts with corn up1-1/4 cents, soybeans up 2-1/4, soft red winter wheat up 4-1/2 and hard red winter wheat up 5-1/2.
In the export report, soymeal sales of 132,100 were down 23% from the prior week and down 20% from the four-week average. However, the numbers were within trade forecasts. Mexico, the Philippines and Colombia led buyers. Net sales of 2016/2017 soymeal of 200 tons went to Canada.
Sorghum sales of 1.5 million bushels were down 10% from the prior week and led by China and Mexico.