July 16, 2010

 

US soy sales leap to near 7-month peak

 

 

US soy export sales last week rose to a near 7-month high as elevated prices in South America, which normally dominates the world market during the Northern Hemisphere summer months, fuelled stronger demand for nearby shipments of US soy.

 

Some difficulty shipping large volumes of soy from Brazil and Argentina, the world's No. 2 and No. 3 exporters behind the US, may have also prompted a few sales to be switched over to US soy, traders and analysts said.

 

"At this time, most of the business probably should be going to South America, and probably still is going to South America. But, because of logistics considerations and maybe price, there could be a couple of cargoes switched around," analysts said.

 

Net soy sales for shipment in the 2009-10 marketing year, which ends on August 31, totalled 666,500 tonnes in the week ended July 8, a 5-1/2-month high, USDA data showed. There were also 558,500 tonnes in sales for 2010-11 shipment.

 

China, the world's top soy importer, bought 234,000 tonnes of old-crop US soy and 226,000 tonnes of new-crop soy.

 

Among the other top buyers in the week, Egypt bought 121,800 tonnes of old-crop soy and South Korea bought 81,900 tonnes of old crop and 60,000 tonnes of new crop.

 

Meanwhile, US corn export sales last week were up 24% from the previous week at the highest level in three weeks, but traders said new-crop corn sales were disappointing.

 

US corn futures on the Chicago Board of Trade rose sharply from June 30, when USDA reported 2010 US corn acreage well below trade expectations. Through last week, the spot corn contract <Cc1> had rallied 16%.

 

USDA said net US corn sales in the week ended July 8 totalled 678,200 tonnes for 2009-10 marketing year shipment and 345,300 tonnes for 2010-11.

 

Japan, the top market for US corn, was the week's biggest buyer, with 214,000 tonnes in old-crop purchases and 106,000 tonnes in new-crop purchases. Egypt bought 163,700 tonnes of old crop and 60,000 tonnes of new crop.

 

China, which this summer bought US corn for the first time in four years, purchased 125,200 tonnes last week. USDA also reported that same volume was shipped to China.