March 16, 2012

US soy export sales lower on strong China demand

US soy export sales were lower last week but bolstered by demand from China, still met expectations as the third-largest weekly sales since September, according to USDA data released on Thursday (Mar 15).

Corn export sales were the largest in three weeks amid steady buying by Japan, Mexico and South Korea, the top three importers of the grain, USDA data showed.

Wheat sales, however, fell to a 10-week low and missed trade forecasts.

USDA said net soy export sales totalled 1.394 million tonnes in the week ended March 8, above trade forecasts for 650,000 to 900,000 tonnes and well above total sales of 214,500 tonnes in the same week a year ago.

The week's tally included 609,700 tonnes of old-crop sales for shipment by the end of the marketing year on August 31 and 784,000 tonnes of new-crop sales.

China was by far the week's biggest buyer with 368,200 tonnes of old-crop purchases and 669,000 tonnes of new-crop.

The old-crop sales were stronger than is typical for this time of year as drought-reduced supplies in Brazil and Argentina, along with port congestion and other logistical woes in South America, shifted demand for near-term shipments to the United States.

Net corn export sales last week totalled 836,400 tonnes, all of it for shipment in the current marketing year which ends on August 31. That was near the high end of trade forecasts for 600,000 to 850,000 tonnes.

US wheat export sales were a net 360,300 tonnes, below expectations for 400,000 to 600,000 tonnes.