The Lunchtime News
14/06/12 -- The USDA have reported a mixed bag of weekly export sales, with wheat coming in better than expected at 432,900 MT versus forecasts of 250-350 TMT. Soybean sales were 425,100 MT for old crop and 580,000 MT for new crop compared to the combined 500-750 TMT expected. Corn sales however were only 92,100 MT of old crop - a marketing-year low - and 77,700 MT of new crop versus trade ideas of combined sales of 400-600 TMT.Maybe the old crop corn sales were so low because there's so little left? That doesn't explain the poor showing from the new crop though.
Once again the stand out number for me is the large volume of old crop soybeans that keeps making regular weekly appearances. Where is all that going to come from? As you might expect China took the lion's share booking 261,500 MT of the old crop and 470,000 MT of the new crop.
It may be starting to sound like a bit of a broken record but the upside potential on soybeans looks like it could still be explosive one day in the not too distant future.
The Chinese only sold less than 18 TMT of the 600 TMT on offer in this week's government soybean auction.
China's Ag Ministry estimate June soybean imports at 6.56 MMT versus their previous estimate of 5.16 MMT
The NOPA May US soybean crush came in at 138.27 million bushels versus the 134.7 million in April and 120.3 million in May 2011
The USDA have also reported the sale of 110,000 MT of wheat to China for 2012/13 delivery under the daily reporting system. Japan bought 147,118 MT of mostly US wheat in it's usual weekly tender. Taiwan has bought 47,050 MT of US spring wheat for July/Aug shipment
Some weather forecasters have taken some of the rain out of the US forecast.
The electronic market is trading higher but European jitters look set to cap gains tonight. Spain is now having to pay 7% yields on 10-year bonds, and Italy's yields on three-year bonds have jumped from 3.9% a month ago to 5.1% today. Just in case you need reminding we also have the Greek elections coming up on Sunday.
