November 6, 2010

US soy exports stay solid

The USDA's weekly export summary shows the country's soy exports as persistently strong, with sales of almost 1.6 million tonnes during the week ending October 28.

While net sales were down 22% from the previous week, they were up 5% from the prior four-week average. The primary destinations were China (927,100 tonnes), unknown destinations (269,500 tonnes), Mexico (106,400 tonnes), Japan (88,700 tonnes), Spain (66,500 tonnes, including 65,000 tonnes switched from unknown destinations), and Cuba (40,000 tonnes).

Export sales commitments reported to the USDA for the current marketing year are almost 15% ahead of last year's record pace. China is the buyer of about 60% of US soy exports.

The strong soy sales figures helped soy jump US$0.37 per bushel for the November contract to close at US$12.64 Thursday on the CBOT.

Corn exports are running slightly behind last year's totals at this time, 7.4 million tonnes versus 7.7 million tonnes at this time last year.

Corn nonetheless closed up US$0.09 per bushel to US$5.90 for December delivery, primarily on the impact of the weaker dollar.

Don Roose, president of US Commodities in West Des Moines, said the decision by the Federal Reserve to put US$600 billion of new money into the US economy by purchasing US treasuries "has caused a flight into commodities."