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August 28, 2020 | FBN Insights | Kevin McNew

Strong Export Sales Reported

China now has 252 million bushels of corn on the books for 2020/21

Strong Export Sales Reported

  • New-crop soybean sales for the week ended August 20 were strong again, as expected, at 68.9 million bushels.
  • 21.75 million bushels were reported to China, which brings purchases for 2020/21 to 459 million bushels up from 9.5 million at this time last.
  • Total soybean commitments for 2020/21 are now at 824 million bushels compared with 206 million last year and are a record for this time.
  • Strong new-crop corn sales of 46.5 million bushels were within market expectations with 26.2 million reported to China for the week.
  • 2020/21 total corn sales are now 527 million bushels compared with 218 million last year and are the 2nd highest on record.
  • Wheat sales of 28.1 million bushels slightly exceeded market expectations and were a marketing year high now 12 weeks into 2020/21.
  • Upland cotton sales were 156,600 running bales, 22% above the week prior, and up 7% from last year. 
  • Cotton exports for the first 3 weeks of the marketing year are a record large 977,658 running bales.

FBN’s Take On What It Means: China now has 252 million bushels of corn on the books for 2020/21, already well above record annual US corn exports to China of 203 million. Soybean sales are on a record pace, but at 39% of the USDA's forecasted annual exports next year of 2,125 million bushels, they are not extremely ahead of schedule. FBN expects elevated export business will continue and will be needed to offset potentially large production. 

Hurricane Mostly Misses Crops

  • Laura made landfall early on Thursday as a Category 4 storm with wind speeds of 150 mph. 
  • Export shippers were spared a direct hit as the storm veered west of grain export terminals in New Orleans.
  • The hurricane missed many fields of unharvested cotton in the Delta.
  • In Louisiana, most rice fields had already been harvested, and there was minimal impact expected on sugarcane production.
  • The rains could slow harvest activity over the next two weeks in Mississippi and Louisiana.
  • The storm's rains, however, are also projected to miss many of the driest areas of the Midwest.

FBN’s Take On What It Means: While the hurricane was devastating to many coastal areas, it was less of a disaster for agriculture. Rain is forecast starting this weekend in most of the Midwest. Amounts may not soak all areas, but may be sufficient to stop the decline in crop conditions. Follow up rain will be needed especially in the western Corn Belt. 

 

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