September 13, 2010

US wheat sales reach three-year high

In the week ended September 2, US wheat export sales surged to the highest point in three years amid exceptionally strong sales of wheat for export in the 2011/12 marketing year, which begins on June 1, according to the USDA.

US wheat demand has grown as a severe drought in the Black Sea region slashed wheat output in several key production areas and Russia banned grain exports until after the 2011 harvest late next year.

USDA said wheat export sales in the week ended September 2 totalled 953,400 tonnes for shipment by May 31, 2011, and 660,000 tonnes for shipment in the 2011/12 marketing year, which begins on June 1.

Sales for both marketing years combined were the largest since September 2007, according to USDA data.

Egypt, the world's No. 1 wheat importer, was the week's top buyer with 115,900 tonnes in current marketing year purchases and 330,000 tonnes in next marketing year purchases.

USDA also said 226,000 tonnes of wheat for 2010/11 shipment and 275,000 tonnes for 2011/12 were sold to "unknown" destinations, which exporters are not required to disclose until the grain shipments are loading.

Net corn export sales last week totalled 680,200 tonnes for shipment in the 2010/11 marketing year, which began on September 1, USDA data showed.

Top buyers were No. 1 corn importer Japan with 150,000 tonnes, Egypt with 120,000 tonnes, and South Korea with 117,300 tonnes. Sales to unknown buyers totalled 180,400 tonnes.