IARN — Soybeans continue to lead the charge in the weekly US Export Sales Reports.
In the report released from USDA on Friday morning, soybean exports reached 2.63 million metric tons for the week ending October 8th. The net sales for new crop beans were up two percent from the previous week, but down two percent from the prior four-week average. Commodities broker Greg McBride with Allendale says China bought the most US soybeans at 1.59 million metric tons. The China buying came even as the country was on break for holiday.
“Very good sales for soybeans with the 2.63 million metric tons,” McBride said. “Corn, wheat, bean oil, and bean meal were within their allotted ranges. Corn was actually at the lower end of the range of estimations at 655,000 tons. Not the best week for corn. We’d prefer to see quite a bit more at the rate we’ve been going. With the rate we’ve been seeing prices go up, we’d like to see that continue to feed that bull a little bit.”
New crop corn exports were down 47 percent week-to-week and 63 percent from the prior four-week average, USDA said. The daily wire Friday morning showed Mexico bought 128,000 metric tons of new crop corn, which McBride said was good to see. Also on the daily wire, 175,000 metric tons of beans were sold to unknown.
The month of October and the 2020 harvest have one thing in common: a fast pace. McBride offers some advice for Iowa growers.
“If you’ve sold some cash, it might be worth it to look at re-ownership on a dip,” he said. “But if you have not sold cash, this is the big thing to watch. The spreads are trying to tell you right now that they want these corn and bean bushels up front. They don’t want you to store it. They are not trying to tell you that they will pay you to store it this year. This is one of those times where getting it sold before the end of the year – or immediately after the first of the year – is the way to go.”
The next US Export Sales Report will be released on Thursday, October 22nd.
Story courtesy of the Iowa Agribusiness Radio Network.
Image source: Brent Barnett
