August 14, 2017
Low prices and plentiful supplies kept movement in the export pipeline brisk last week. Foreign customers continue to ship out previous sales, a good signal that cancellations may not be an issue as the marketing years for corn and soybeans wind down.
USDA reported 29.8 million bushels of corn inspected last week. That was down from the previous week, and just below the low end of trade guesses. Nonetheless, year-to-date inspections remain well above USDA’s forecast for the crop year, suggesting the agency may still be too low on its projection. But no change is likely until data on Sept. 1 stocks and census export data is reviewed for the October supply and demand report.
As trade negotiators in North America put out opening position in talks to rewrite NAFTA, the importance of the U.S. neighbors was easy to spot. Mexico was again the leading destination for U.S. corn sales, taking 11 million bushels, nearly four times more than second place Peru, which had 3.3 million bushels.
Soybeans and what were also bound for south of the border. Mexico took 2.5 million bushels of wheat and 4.5 million bushels of soybeans.
Despite talk of over-purchasing by importers, Chinese buyers continue to take shipment of previous purchases. The accounted for around half this week’s total of 20.9 million bushels, with Mexico second.
Year-to-date soybean inspections are still ahead of the increase forecast by USDA, even though the agency raised its outlook for the 2016 crop by 30 million bushels last week.
Wheat business remains solid, though not spectacular. Inspections of 18.8 million bushels were down from the previous week but are still ahead of the rate forecast by the government for the marketing year. Year-to-date inspections are around 13% of that rate so far.
Japan was the top destination at 6 million bushels, the Philippines second at 3.5 million. Smaller buyers in the Americas continue to take a smattering each week.
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