IARN — China didn’t have any major purchases of U.S. soybeans for the week ending June 18th.
Commodities broker Greg McBride with Allendale says the latest U.S. Weekly Export Sales Report Thursday morning was mostly a neutral report with not a lot of surprising action.
“We came in at the lower end of estimations for both corn and beans,” McBride said. “Just over a half million tons for corn and a little over a million tons for beans. Nothing that was really exciting. We didn’t see the major Chinese purchases that we were hoping for. That will be the key that we watch for on these reports to make sure they are keeping up with that phase one trade deal.”
Export sales for corn remained mediocre at 461,700 metric tons of old crop and 77,000 metric tons of new crop. Soybean exports were softer at 601,900 metric tons of old crop and 560,700 metric tons of new crop.
McBride adds the report was bearish on the soybean meal side of things.
“Meal had been a fairly strong mover here recently, but we didn’t see a lot on that side,” he said. “I think the biggest thing we have to watch is to continue to see those purchases from China.”
McBride says all eyes will now be turned towards the next round of USDA reports. The quarterly grain stocks and acreage reports will be released at 11 a.m. Central Time on Tuesday.
“What we’re looking for is a little bit of a draw down on the acres for corn,” McBride said. “They were at 96.99 on the March report. I think the average guess right now is looking at about 95.2 million acres. So, a big decrease historically from the what the USDA normally does. I think that’s the biggest decrease in 25 years.”
The full rundown of the latest U.S. Weekly Export Sales Report can be found here. The next report will be released on Thursday, July 2nd.
Story courtesy of the Iowa Agribusiness Radio Network.
