US soy sales worst in years as China cancels
Big cancellations of US soy purchases last week by China, the world's top importer, marked the worst week of soybean export sales in eight years, according to USDA data.
USDA reported a net 115,800-tonne reduction in 2009-10 marketing year sales in the week ended March 4, which more than offset net sales of 65,100 tonnes for 2010-11.
The resulting 50,700-tonne net drop was the first net decline in combined old- and new-crop sales since May 2004 and the largest single-week decline since March 2002, USDA data showed.
China cancelled a net 192,400 tonnes of old-crop purchases and bought 65,000 tonnes new-crop. Undisclosed buyers accounted from 75,000 tonnes in old-crop cancellations. Top buyers in the week included Mexico, Japan, Egypt and Taiwan.
US soy export sales were expected to be minimal through the remainder of the 2009-10 marketing year as lower prices in South America, where farmers are expecting record-large soy crops, lure the bulk of global demand.
Meanwhile, US corn export sales dropped 56% last week to the lowest point in two months as Japan, Egypt and Taiwan purchased moderate amounts but sales to South Korea, the No. 2 US corn buyer last year, were minimal.
USDA reported net sales of 338,600 tonnes of corn for shipment in the 2009-10 marketing year, which ends on August 31.
Japan bought 163,400 tonnes, Egypt bought 109,700 tonnes, and Taiwan bought 104,300 tonnes. South Korea purchased a net 300 tonnes in the week.
Export sales of US wheat last week were up sharply from the previous week's two-month low and up 14% from the prior four-week average.
Net sales of all classes of US wheat in the week ended March 4 totalled 407,900 tonnes for shipment in the 2009-10 marketing year and 40,500 tonnes for 2010-11. The wheat marketing year ends on May 31.
Nigeria was the largest buyer in the week with 130,900 tonnes of spring wheat and hard and soft red winter wheat. Other big buyers included Japan, Venezuela and Taiwan.
