September 30, 2011

 

US soy sales surge on China's purchase

 

 

US soy export sales for last week hit an eight-month high on active buying by China, according to the USDA data released early on Thursday (Sep 29).

 

Net sales of US soy totalled 1,033,500 tonnes in the week ended September 22, USDA said, above trade forecasts for 550,000 to 750,000 tonnes.

 

China, the world's top soy importer, purchased a net 845,600 tonnes last week, which is the country's biggest weekly tally since late January when a trade delegation to the US signed contracts to buy more than 3 million tonnes.

 

Chinese demand normally accelerates in tandem with the rising US soy harvest, although demand to date has been dampened by high US prices and ample supplies of competitively priced South American soy.

 

However, US prices have become more attractive in recent days. Benchmark Chicago Board of Trade soy futures <Sc1> tumbled to a six-month low last week and have since fallen further to a 10-month low.

 

US corn export sales rebounded 36% last week to a net 812,900 tonnes, within trade expectations for 750,000 to 950,000 tonnes.

 

Top corn importer Japan was the week's biggest buyer with 386,700 tonnes in purchases followed by China with 182,100 tonnes, most of it switched from previously reported sales to unknown destinations.

 

Net export sales of all varieties of US wheat totalled 428,900 tonnes last week, down 37% from the prior week and below trade forecasts for 450,000 to 550,000 tonnes.

 

Mexico was the top buyer for the week, with purchases of 116,100 tonnes of hard and soft red winter wheat.