US Weekly Export Sales
Corn sales took center stage this week with old-crop sales coming in at 22 million bushels, and topping the high end of expectations.
New-crop corn sales came in at 224 million bushels, thanks mainly to China and previously-announced sales.
Wheat sales were dismal; poor old-crop is not surprising but new-crop sales are far from exciting.
Soybean sales were routine with most of the buyers shopping in Brazil and Argentina for now, but we still are getting some traction with 11 million bushels sold this week, old and new crop combined.
Upland cotton sales of 171,200 running bales were up 59% from the previous week and significantly above the 4-week average.
FBN’s Take On What It Means: USDA’s old crop export projections assume China ships the majority of remaining old crop sales on the books, which is supported by the lack of cancellations. New crop commitments of both corn and beans are significantly ahead of last year due to China’s purchases. Solid demand for US grains in the world market can be expected to support prices into the summer.
HRW Quality At Risk
Recent rainfall has helped immature wheat in Kansas and neighboring areas while raising some concern over the more advanced crops in the south.
Frequent rain is forecast to fall across the central and southern Plains over the coming week to ten days.
Temperatures are expected to be a little cooler than normal, but warm enough to support crop development.
Too much rain, too frequently can change a good production environment to one of concern due to excessive moisture while crops are trying to mature.
Late-season conditions have so far remained mostly steady for much of the hard red winter wheat in the central and southern Plains.
The Wheat Quality Council Kansas hard winter wheat tour last week saw record crop potential, but noted concern about stripe rust occurrence.
FBN’s Take On What It Means: The timing of the rain can affect the quality of the wheat. Drier weather will soon be needed to protect production against the disease pressure and potential loss of grain quality due to recurring rain prior to and during harvesting. Conditions will likely remain favorable for much of the central Plains, but the concern will be higher for maturing crops in Texas and Oklahoma where the most significant rain is expected.
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