Export Sales Confirm Chinese Soy Buys

The weekly export sales report from USDA confirmed that China has been in the market buying both old- and new-crop U.S. soybeans. USDA also reported better-than-expected corn sales for the week ended June 19.

USDA reported weekly soybean export sales totaling 29.8 million bushels, including 8.5 million bushels for the current marketing year and 21.3 million for 2003-2004 shipment.

China was reported as the buyer just over 2 million bushels of old-crop U.S. soybeans and another 8.3 million bushels for 2003-2004. In addition, USDA reported 2003-2004 sales of more than 8.9 million bushels to unknown destinations, which could also be China.

U.S. soybean export sales for 2002-2003 have now topped 1.052 billion bushels, with actual export shipments at 980.3 million, versus USDA's current export projection of 1.010 billion.

USDA reported total U.S. corn export sales for the week ending June 19 of 37.6 million bushels. Sales for the current marketing year totaled 32 million bushels, while 5.6 million were sold for 2003-2004 shipment. The total corn sales figure was slightly above the top end of trade expectations.

However, actual weekly corn export shipments were disappointing at 28.6 million bushels, which is below the pace needed to reach USDA's export projection of 1.6 billion bushels.

For the marketing year to date, old-crop corn sales are running about 16% behind a year ago, while actual shipments are more than 15.8% behind.

USDA pegged weekly U.S. wheat export sales at 19 million bushels, which was toward the high end of trade expectations.

Japan was the leading buyer of U.S. wheat for the week at just over 4 million bushels. A number of other countries purchased small amounts of U.S. wheat. Egypt showed up as the buyer of one cargo.

Less than three weeks into the new marketing year, wheat export commitments for 2003-2004 had reached 176.2 million bushels, a 19.3% increase over the 147.7 million bushel total of a year earlier.

However, actual shipments of 34.6 million bushels trail last year's total of 37.7 million.

Editors note: Richard Brock, The Corn and 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.