Low Prices Spur Demand For Corn And Soybeans

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Includes: CORN, SOYB, WEET
by: T. Marc Schober

Summary

Weekly net corn sales were 2,166,800 MT, a 13% increase from last week and a 305% increase from the prior 10-week average.

Weekly net soybean sales were 1,031,300 MT, a 10% increase from last week and a 36% increase from the prior 10-week average.

Weekly net wheat sales were 299,400 MT, a 34% decrease from last week and a 27% decrease from the prior 10-week average.

U.S. corn and soybean sales increased for the week ending October 17th in the 2014/2015 marketing year, marking the sixth increase in the last seven weeks for both crops. Corn and soybeans have both experienced multi-year highs during that time period. Wheat sales decreased from last week. Soybean exports increased for the seventh consecutive week, reaching their highest level since November 2013. Corn and wheat exports both decreased from last week.

Harvest progress for soybeans has progressed nicely compared to corn harvests sluggish advancement. Some analysts are suggesting that the delay in harvest may be helping with the lack of storage for grains. The accelerated pace of exports this fall has allowed elevators to move grain. This in turn has created more space to store the record breaking corn and soybean crop coming off the fields.

Weekly net corn sales were 2,166,800 MT, a 13% increase from last week and a 305% increase from the prior 10-week average. Increases were reported from unknown destinations, Japan, Jamaica, Peru, and Colombia. Decreases were reported from Vietnam, Guatemala, and China. Exports were 676,700 MT, a 25% decrease from last week and a 24% decrease from the prior 10-week average. The primary destinations were Mexico, Colombia, Japan, Venezuela, and Guatemala.

Weekly net soybean sales were 1,031,300 MT, a 10% increase from last week and a 36% increase from the prior 10-week average. Increases were reported from China, Spain, Taiwan, Turkey, the United Kingdom, and South Korea. Decreases were reported from unknown destinations, Thailand, and Peru. Exports were 1,880,100 MT, a 23% increase from last week and a 325% increase from the prior 10-week average. Primary destinations were China, Taiwan, Spain, Mexico, Turkey, and the United Kingdom.

Weekly net wheat sales were 299,400 MT, a 34% decrease from last week and a 27% decrease from the prior 10-week average. Increases were reported from Japan, the Philippines, South Korea, the Dominican Republic, and Nigeria. Decreases were reported from unknown destinations, the French West Indies, Guatemala, Brazil, and Taiwan. Exports were 431,700 MT, an 11% decrease from last week and a 25% decrease from the prior 10-week average. Primary destinations were the Philippines, Japan, Taiwan, Mexico, and Brazil.

Source: USDA Foreign Agricultural Service

Source: USDA Foreign Agricultural Service

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.