The USDA released its weekly U.S. Export Sales Report on Thursday.
Soybeans are bullish, and corn sales aren?t where they should be at this time of year. Allendale commodity broker Greg McBride provided the details from this week?s report.
?Neutral sales on corn- the lower end of estimates at 589,000 tons,? McBride said. ?We were looking for somewhere between 500,000 and 900,000 tons. This is counter seasonal. We should be seeing better sales than this on corn right now. On the contrast, we had beans that were bullish across the board. Old crop sales were above the estimated range. New crop sales were also above the estimated range- came in at a total of 2.49 mmt. 1.596M of that came from old crop, 895,000 tons from new crop for beans. China was a good buyer. We also had a bunch of sales to unknown destinations for old crop and new crop beans, so that continues to look good for us. As we?ve seen from South American production and what we?re seeing for balance sheet estimates, they?re taking exports away down there just based off of lower production at this point. The USDA yesterday chose not to increase our export demand at this time, but that is something they could be looking at on the March WASDE report.?
McBride added that the bean sales are reinforcing the counter seasonal pattern they?re seeing.
?The bean meal numbers came in neutral at the lower end of estimates at 2.45,? McBride said. ?Bean oil sales came in bearish at 2.8 thousand tons. That is below the average guess. So, at this point, the bean sales look great. Again, this is counter seasonal to what we would normally expect. We would expect to see big sales coming out of Brazil, but, with their production issues, maybe there are some questions. We are seeing some good purchases coming out of China and unknown.?
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
