A very slow week of corn sales could cause bulls some second thoughts this morning, with net new bookings for the latest week coming in at just 9.9 million bushels. That, of course, was well below trade guesses and much less than half the weekly rate forecast by the government for the rest of the marketing year.
Despite the dismal showing, there are still a few bright spots in the outlook. China booked another two cargoes of U.S. corn, though the deals were switched from “unknown destinations.” And a heavy preseason pace has built up a surplus of sales still to be shipped.
Wheat sales also were lackluster at 11 million bushels, though that wasn’t far off from the rate forecast by USDA for the rest of the marketing year. Still, most deals were relatively small, and competition remains keen, especially into North Africa and the Middle East. Russia and Ukraine split the latest snap tender from Egypt today for 8.8 million bushels.
Soybean exports were the only right bright spot of today’s weekly summary. Net new bookings totaled 22.3 million bushels, though China took only a little more than half the total. Shipments as expected were strong at 45 million bushels, with China dominating that statistic. However, despite the good showing, the slow start to the season continues to validate USDA’s decision to trim its export forecast for the marketing year by 50 million bushels in Wednesday’s monthly forecast, with more reductions possible.
For the complete export report, click here.