IARN – The United States Department of Agriculture released its weekly report on export sales to the United States on Friday.
Allendale commodity broker Greg McBride said sales of the old crops were surprisingly good this week again.
“Well, the weekly exports were neutral,” McBride said. “They are all within the range of estimates for the new crop and old crop combined. The big surprise this week, again, is some very good old crop sales, or at least better than expected old crop sales, for corn. We arrived at 531,000 tonnes. We were looking for somewhere between 200,000 cancellations and maybe a purchase of 400,000, so we exceeded that expectation. “
One of the important things to note was China’s appearance as a buyer.
“The great thing to watch here is that China was actually a buyer of around 160,000 tonnes on this report,” McBride said. “This goes against what we had heard, that there were going to be cancellations released from China.”
McBride explained why there was a significant drop in China’s buying frenzy last week.
“Well, we just didn’t see them come in,” McBride said. “We have had phone conversations about the trade deal we have with them. I think a lot of it was positioning and buying before that just to show good faith, but we haven’t really seen them active on the soy side lately either. They’ve appeared in sales of new crop soybeans – only 10,000 metric tonnes – but at least that’s something that kinda gives them their name.
McBride said there was no cause for concern as there is still plenty of time until the end of the marketing year for the old crop.
Story courtesy of Iowa Food Radio Network
Photo courtesy of Southeast Farm Press