IARN — China boosted its purchases of corn from the U.S. for the week ending July 2nd.
According to commodities broker Greg McBride with Allendale, weekly export sales for both corn and soybeans came within the average estimation range from analysts. China was a bright spot in the export sales report Thursday morning.
“About a million tons of corn, both old crop and new crop combined,” McBride said Thursday morning. “It was 1.334 million tons for beans. That looks good for us. A lot of Chinese buying in that. It was actually a nine-year high for Chinese buying for corn for this particular week. We do need to continue to see them come in.”
McBride says producers will be looking ahead to the July WASDE report, set for release at 11 a.m. CT on Friday.
“The expectation is for higher old crop corn ending stocks and lower new crop ending stocks because of the reduction in acres,” McBride said. “That will probably do a little to offset things. It still looks fairly bearish out there, but not as bad as a week and a half ago. What we’ll be watching for on the beans is maybe a slight decrease in ending stocks. It all just really depends on where the export demand comes in. We know we’ve got very good crush, but that export demand is going to be a big number to watch.”
McBride notes that upcoming weather forecasts will be another main focus for producers. The next weekly U.S. Export Sales Report will be released Thursday, July 16th.
Story courtesy of the Iowa Agribusiness Radio Network.
