USDA Weekly Export Sales

The USDA weekly export sales report for the period May 29-June 4, 2009 highlights:

Wheat: The USDA reported better than expected net sales for the 2009/10 marketing year, which began June 1, of 353,900 MT. The details of the sales are a bit complicated this week, as the new marketing year for wheat began halfway through the period. A total 630,700 MT in sales were carried over from the 2008/09 marketing year, which ended May 31. Exports for the period May 29-31 of 347,200 MT brought accumulated exports to 25,973,000 MT, down 20 percent from the prior year’s total of 32,563,500 MT. Exports for June 1-4 totaled 75,600 MT, with Nigeria (49,900 MT), Japan (8,200 MT), Mexico (6,300 MT), the United Kingdom (3,500 MT), and Trinidad (2,800 MT) being the main destinations.

Corn: Net sales of 713,100 MT of old crop were up 18 percent from the previous week, but down 4 percent from the prior 4-week average. Increases reported for Japan (296,200 MT), Taiwan (102,200 MT), Mexico (95,300 MT), Colombia (43,300 MT), unknown destinations (43,200 MT), Syria (27,000 MT), and Peru (25,000 MT). There were also net sales of 149,900 MT for delivery in 2009/10. Pre-report trade estimates had been for combined net sales of 500,000 to 850,000 MT.

Soybeans: Net old crop sales reductions of 61,000 MT were reported this week, primarily as a result of for unknown destinations (73,500 MT) and China (55,000 MT). Net sales of 280,100 MT for 2009/10 delivery resulted as increases for unknown destinations (226,500 MT, including 91,500 MT switched from the 2008/09 marketing year), Mexico (53,600 MT), and Cost Rica (8,000 MT). Pre-report trade estimates had been for combined net sales of 200,000 to 400,000 MT.

Reaction: negative old-crop bean sales were disappointing, but no great surprise. The unknown/Chinese cancellations were more than matched by fresh sales to unknown in new crop, indicating that Chinese crushers are probably rolling purchases forward rather than cancelling outright.

Corn sales were strong again, as too were wheat sales for once. Pre-report estimates for wheat were 200-300,000 MT. Interesting too to see the UK in there taking 3,500 MT last week.