Weekly Soybean Export Sales Plunge

USDA's weekly export sales report showed net soybean sales fell 84% below the four-week average as large cancellations of previous sales offset new business for the second straight week. Meanwhile, weekly corn sales were slightly above expectations, while wheat sales were in line with trade estimates.

USDA reported net soybean export sales of only 4.3 million bushels for the week ended Feb. 7, versus trade expectations for 13-20 million bushels. USDA reported new sales of over 18.8 million bushels for the week, but those were offset by cancellations of almost 14.5 million bushels.

The large cancellations appear to confirm market fears that a huge South American crop will result in business being switched from the United States to South America. China's new GM crop rules may also be having a negative impact although China did book 2 million bushels of new sales on the week.

For the marketing year to date, soybean export sales are now running about 8.1% ahead of a year earlier. Actual export shipments are 15.1% ahead of the 2000-2001 pace. Weekly shipments totaled 26.6 million bushels, down from 42.5 million last week.

USDA reported net corn export sales of 41.1 million bushels for the week ended Feb. 7, versus trade expectations for 29.5-39.5 million bushels.

Mexico was the largest buyer on the week, followed by South Korea and Taiwan. Japanese purchases fell off significantly from the previous week.

For the marketing year to date, corn exports sales are now running 3.7% behind a year earlier. Actual export shipments are now 8.8% behind the 2000-2001 pace. Weekly shipments were slow at 25.6 million bushels, 18% below the four-week average.

USDA reported net weekly wheat export sales of 16.1 million bushels, versus trade expectations for 13-22 million bushels. The weekly total was 17% under the four week average. Japan was the leading buyer on the week.

For the marketing year to date, wheat export sales are now running 6.1% behind a year earlier. Actual export shipments are running 7.1% behind the 2000-2001 pace. Weekly shipments totaled 15.9 million bushels.

Editors note: Richard Brock, Soybean Digest's Marketing Editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.

To see more market perspectives, visit Brock's Web site at www.brockreport.com.