IARN: Export sales were less than friendly this week, according to an Allendale broker.
The U.S. Export Sales Report on Thursday morning had bearish numbers for corn, soybeans, wheat, and soybean oil. Total corn exports on the week were 599,100 metric tons, soybeans were 238,700 metric tons, and wheat exports came in at 182,600 metric tons. Allendale commodities broker Greg McBride says the report was very disappointing, and that the overnight market tanked upon the report’s release.
“In technical terms, it was a clunker,” McBride said. “We had lower than expected old crop sales for corn, beans, and wheat. Overall, these numbers are disappointing. They are lower than the five-year average when it comes to corn, beans and wheat. The market really took it on the chin as soon as the numbers were released. We dropped about 5-6 cents on the corn which took us down about a dime on the overnight, and then beans dropped from their new contract highs about 30 cents.”
“China was on their holiday last week,” McBride said. “Contrary to popular opinion, they do actually still buy while they are on holiday. They didn’t do it last week, but they still do buy from us. We are looking at the possibility of maybe some 8 a.m. sales coming through. We’ve heard that all week, but they continue to pump that rumor into the market that China is looking at some old crop corn and beans this week.”
The next U.S. Export Sales Report will be released on Thursday, March 4th.
Story courtesy of the Iowa Agribusiness Radio Network
