August 2, 2010

 

China continues to buy 2009 soy

China continues to book sales of 2009 crop soy, buying 8.8 million bushels in the latest week, despite ideas that demand should be slowing, according to today's Export Sales tally.

 

The 2009 crop deals could belie the relatively small change made today by USDA in its monthly supply and demand report while a similar amount of new crop purchases were previously reported under the agency's daily purchases. The agency increased its forecast of 2009 crop sales by only five million bushels. USDA has consistently underestimated demand from the world's largest soy consumer.

 

The government also announced today under its daily reporting system that China bought another 4.3 million bushels. While old crop sales were strong, shipments are tailing off, falling to just 2.8 million bushels in the latest week. Nonetheless, export terminals are reported to be booked for much of the rest of the summer, so traders will be waiting to see if the pace picks up as the marketing year approaches its August 31 conclusion.

 

Corn sales of 32.5 million bushels were a little under trade guesses but close to last week's total. China also bought a load of old crop corn, with buyers from Asia, the Americas and the Middle East also in the market. Shipments topped 40 million bushels but more may be needed to reach USDA's goal for the marketing year, though USDA data has not kept up with numbers confirmed by the Census Bureau.

 

Wheat business remains good, with more expected after the government increased its forecast for the marketing year due to lower world production caused by a series of weather problems in the northern Hemisphere. Total sales for the week were 18.9 million bushels, with a variety of buyers taking individual loads, dominated by those in Asia and the Americas.