Strong agriculture exports have been the bright spot of the U.S. economy, and the latest news shows plenty of interest this week.
Corn showed surprising strength in the latest weekly report from USDA, with total old and new crop sales of 42 million bushels, well above trade guesses and doubling the rate forecast by the government for the rest of the marketing year. Mexico, hard hit by drought last year, was the big buyer, taking 16.35 million bushels, with a previously announced sale of 9.45 million bushels to Egypt also on the list. Shipments were brisk as well at 42.9 million bushels, one reason for the strong CIF basis at the Gulf, which is stronger this week.
China didn't make the list of big corn buyers, but did ship out a load previously purchased.
Wheat sales in the weekly report weren't all that great at 15.7 million bushels, down from last week and trade guesses. Next week's totals should be better, thanks to a pickup in business from Egypt. In addition to the load bought over the weekend, the U.S. sold another 6.6 million bushels of soft red winter wheat to the world's largest importer today. Only French and U.S. wheat were offered, as Russian wheat out of the Black Sea remains priced out of the market.
Also of note was the big weekly total for white wheat, 8.8 million bushels.
USDA reported weekly soybean sales of 22.6 million bushels, at the low end of trade guesses, but shipments remain strong at 37.6 million. Next week's totals could be swelled by purchases by the Chinese trade delegation this week, though not all, or even most, of the deal will show up.
China and the U.S. signed deals for some 316 million bushels of soybeans yesterday, with total purchases expected to top 440 million when other ceremonial purchases are announced today in Los Angeles.
For the complete export report, click here.