This week?s U.S. Export Sales Report was positive overall. Allendale?s Director of Brokerage Mike Lung said corn exports exceeded expectations, while soybeans came within expectations.
?Corn beat expectations, coming in at 2,040- the high end was 1,600- and soybeans came in within expectations a little closer to the lower end at 1,783, with expectations between 1,400 and 3,000,? Lung said. ?Those were some good sales, especially for corn being above expectations. Really, a lot of that interest should be in that new crop with China coming into the mix on some of this new crop corn.?
Recently, China has been going through some COVID lockdowns. However, Lung said this likely won?t be much of an issue for the U.S. export markets.
?It could be something where you see a slow-down in purchasing, but with how much they?ve already been purchasing, especially for new crop, it?s going to be hard to make a larger-scale case that it?s going to going to dramatically slow them down,? Lung said. ?It?s definitely something that could potentially throw logistics for a little bit of an issue if you start to see the ports shut down, but, as of right now, those city centers really shouldn?t be too much of a cause for concern at this moment.?
In fact, despite current lockdowns, Lung said that China has actually been a pretty strong buyer this past week.
?The entirety of new crop corn purchases on this export sales report was to China,? Lung said. ?It was underneath the threshold for daily reports, which is why we didn?t see it in any of the 8AM sales. There was also a slight cancellation of old crop corn from China, so nothing huge, but definitely something to be watching with their outstanding sales if that mentality picks up more. Regardless, they did have the entirety of new crop, so it still shows that they are more than willing participants for the U.S. grain market at this point.?
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
