China was a big buyer of soybeans for the week ending June 11th.
The latest U.S. Weekly Export Sales Report Thursday morning showed soybeans coming in neutral at the upper end of the range, according to commodities broker Greg McBride with Allendale.
?Very big sales by China this week,? McBride said. ?We?re looking at about a million tons that they bought across the span of last week. That looks good for us. That?s what they need to be doing on a weekly basis. The meal and oil numbers were neutral, so nothing big on the crush side of things.?
Mexico had large purchases of soybeans last week, however, McBride says China?s buying led the charge overall.
?The big numbers that we?re continuing to watch are coming out of China,? McBride said. ?They were the bulk of the new crop purchases for the week. New crop came in at 1.38 million tons. They were just over one million, closer to 1.1 million. Most of that coming from China and it?s exactly what we want to see.?
McBride noted corn exports were bearish for both old and new crop, while wheat exports were friendly for new crop. He says weather patterns will be the big story the rest of the month.
?Don?t get wrapped up too much in these export numbers,? McBride said. ?Obviously, we need to continue to see those come through, but I think the main point to watch is the weather as we head into pollination. Weather will be extremely important. Now, there is some rain in the forecast, but if it turns hot and dry, that is the last thing we want to see as we go into pollination here.?
The next U.S. Export Sales Report will be released on Thursday, June 25th. McBride?s full interview can be found below.
