US soy exports diminish on lower China demand

Net export sales of US soy declined 35% last week to the lowest weekly level in eight months, while net corn sales were the highest in a month.

The USDA said net soy sales in the week ended February 11 totalled 203,600 tonnes for shipment in the 2009-10 marketing year, which ends on August 31.

Mexico was the largest buyer with 117,700 tonnes in purchases, followed by the Netherlands and Indonesia. There was a net decline of 4,700 tonnes in sales to China, the world's top soy importer, as well as a net decline of 279,000 tonnes in sales to undisclosed destinations, which traders said was at least in part China.

Demand from China in recent weeks has shifted more to South American supplies. Brazil and Argentina, the world's No. 2 and No. 3 exporters, are expecting record crops this year.

US soy production was projected at 3.260 billion bushels from plantings of 77 million acres in 2010.

Net sales of US corn last week rose 31% from the previous week to 974,600 tonnes. The total included 335,000 tonnes in sales to Japan, the top US corn customer, and 186,000 tonnes to No. 2 buyer Mexico.

Net wheat export sales last week were near the high end of trade expectations, but were down 25% from the previous week and 33% from the prior four-week average, said the USDA.

Wheat export sales last week totalled 408,900 tonnes for the 2009-10 marketing year, which ends on May 31, and 54,500 tonnes for the 2010-10 marketing year.

Nigeria was the largest buyer of the week with 162,900 tonnes in hard red winter wheat purchases, followed by Japan, which bought 83,200 tonnes of winter, spring and white wheat.