Mounting US soy sales seen to reach record export levels

The US Soybean Export Council announced on Monday (Aug 31) that mounting new-crop export sales are bolstering some analysts' predictions that US soy exports will reach record levels during the first half of 2009-10.

The factors driving analysts' expectation included the dramatic drop in South American soy supplies along with escalating new-crop sales and anecdotal reports of export port capacity being sold out for this fall, the council said.

It is expected that 2009-10 US exports will be front loaded due to the lack of competing South American supplies this fall and winter, but analysts expect resurgence in South American production next year due to increased area and rebound in yields to trend levels, according to the council.

The US Department of Agriculture (USDA) reported new-crop soy export commitments at 11 million tonnes with 583,100 tonnes reported during week ended August 13.

This following week new-crop export sales were in excess of 1 million tonnes with USDA announcing the week of August 20 a total of 896,0000 tonnes of 2009-10 sales to China.

The council added that old-crop sales are accumulating as well with 3.3 million tonnes outstanding as of August 13.

With only 18 days left in the marketing year, the vast majority of these will be carried into the 2009-10 marketing year. This will further boost new-crop export commitments as the 2009-10 marketing year gets underway, according to the council.