Dec 24, 2020

Soybeans Higher as Argentine Strikes Continue

Export sales are disappointing, but not surprising given record purchases on the books and seasonal slowdown around holidays

US Export Sales Slowed Last Week

  • Soybean sales for the week ended Dec 17 were below market expectations at a marketing year low 13.0 million bushels.
  • New net sales to China for the week were 137,000 tonnes, but 396,000 tonnes in previously-reported "unknown" sales switched to China.
  • China’s total purchases for 2020/21 are up to 31.8 million tonnes vs 10.9 million last year.
  • Corn sales of 25.6 million bushels were at the low end of the expected range, and were the second lowest of the marketing year to date.
  • The largest sales went to “unknown” buying 10.3 million bushels, while China bought just 472,000 bushels.
  • Wheat sales of 14.5 million bushels were the lowest in five weeks, and fell below last year’s pace.
  • Upland cotton sales of 416,700 running bales were up 14% from the prior 4-week average on increases primarily for China.
  • FBN’s Take On What It Means: Export sales were a bit disappointing, but not really surprising given the record purchases on the books and the approach of the seasonal slowdown around the holidays. Expect sales to pick up again after the start of the new year.
FBN

China’s November Grain Imports

  • China imported 1.23 million tonnes of corn in November.
  • That is up from September and October and is the largest monthly import total of corn dating back to at least 2007.
  • Year to date corn imports total 9 million tonnes compared to 4.1 million tonnes last year.
  • Soybean imports were released earlier this month and that total came in at 9.6 million tonnes, up from last year’s 8.3 million.
  • Wheat imports totaled 800,000 tonnes, which was up from October but less than September imports.
  • Sorghum imports came in at 240,000 tonnes, up 300% from November last year with year to date imports up 440% versus last year.
  • FBN’s Take On What It Means: China’s strong import programs are no secret and are lending support to feed grain and oilseed markets. We expect the demand story to continue for the importer in the coming months.

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Kevin McNew

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Magazine

Marketwatch: Jan, 18

US Corn Price Idx: ZCPAUS.CM

open: 5.7667
high: 5.8486
low: 5.7266
close: 5.8288

US Soybean Price Idx: ZSPAUS.CM

open: 13.366
high: 13.376
low: 13.2328
close: 13.2696

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.3061
high: 7.3384
low: 7.2334
close: 7.2454

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.0114
high: 7.0566
low: 6.9566
close: 7.0014