Weekly Export Sales for the Week Ending July 1
Wheat sales came in at just under 11 million bushels and were up from the previous week at 8 million; sales favored HRS.
Old- + new-crop corn sales came in at 14.6 million bushels and were up notably from the previous week; weekly exports totaled 51 million bushels.
Old- + new-crop soybean sales were light at 6.7 million bushels and were down significantly from the previous reporting week.
Soybean sales were solid with old crop at 211,800 tonnes and new crop at 55,800 tonnes.
Upland cotton sales were light at 52,000 bales but were above last week’s total. New-crop sales were solid at 177,000 bales.
There were no sorghum sales on the books.
China for the week had fresh sales for wheat, soybeans, and cotton.
FBN’s Take On What It Means: Export sales were overall light; wheat sales largely have been disappointing but this was expected. With larger crops in the EU and Ukraine plus a massive crop expected for Russia, the US will have difficulty gaining export sales for HRW. Rumors are that China is sourcing new-crop feed grains from other countries, which underscores its strong demand. Cuts to Brazil’s second corn crop also are a plus for potential export business for the US.
Reuters Poll for EU+UK Wheat Production
A Reuters poll showed the trade looks for the EU crop to be around 130 million tonnes, or up 11% versus a year ago.
The UK crop could be up 50% versus last year.
Soft wheat production for the EU + UK is seen at 145 million tonnes versus 127 million tonnes last year.
That is higher than USDA’s JUne forecast for all wheat at 137.5 million tonnes.
While production totals are expected to be higher, quality concerns are starting to appear.
Wet weather has delayed harvest in France, the EU’s top producer, with harvest generally expected to be a bit later than usual for the EU.
FBN’s Take On What It Means: The larger crop from the EU is not a surprise and will keep competition strong on the export front. China again has been buying French soft wheat for feeding which is a sign that the country still is in need of sourcing feed grains.
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