December 19, 2008
China dominates US 2008 soy exports
China is the predominant buyer of US soy exports this year, taking up 92 percent of total sales or 33.1 million bushels, according to the US Department of Agriculture.
China processors snapped up soy imports after the government bought local supplies in a bid to boost domestic reserves and increase prices. Beijing is concerned of increasing discontent due to falling rural incomes.
On the other hand, US sales of corn to Asian countries this year will be kept to a minimal as most traders are buying hand-to-mouth amounts or buying cheaper wheat which is seeing a bumper crop. China has also indicated that it would buy another 200 million bushels from US farmers, its third such purchase.
US corn sales for the week totalled just 24.1 million bushels, in line with trade estimates but below the rate needed to meet USDA's recently lowered forecast for the marketing year. If the trend continues, the government may have to shave another 50 to 100 million bushels more off its sales target.
Wheat sales continue to wind down after a buoyant first half to the marketing year. Net new bookings of 9.6 million bushels were falling short of estimates, but more than doubled the rate forecast by USDA.