AUDIO: Brian Grossman, Zaner Group
The United States Department of Agriculture today released its weekly export sales report. A couple different crops showed continued strength, while others further weakened. A market strategist outlines the report’s findings and shares future expectations.
Brian Grossman serves as market strategist for Zaner Group. Grossman says United States corn exports increased this week while soybean exports declined.
“Corn had another outstanding week,” Grossman said. “2.5 million metric tonnes is another big push here. Soybeans (are) also coming in pretty strong, just shy of 1.3 (million metric tonnes). Wheat was the weak link out of the group with only 162,000 (million metric tonnes). Good numbers for the row crops.”
Soybean exports fell 1.2 million metric tonnes from 2.5 million metric tonnes last week. Corn exports improved significantly, adding .7 million metric tonnes to finish the export week at 2.5 million metric tonnes. Grossman believes the current political climate did not negatively affect this past week’s export sales.
“The backdrop is there are concerns about tariffs. For now, nothing has been done. It’s all been talk. Nobody out there had any kind of disruption or reason to back off from sales. If anything, the fear of tariffs might be having some countries frontloading boats, so if, and, or when the tariffs do arrive, they have time to figure it out,” Grossman said.
Analysts expect to see continued growth in corn exports. However, Grossman anticipates soybean exports to taper off.
“I have concerns as harvest is moving along,” Grossman said. “There is chatter that Argentina harvest yield numbers are coming in better than expected. That could have a few end users backing off of that.”
Grossman says despite growths in processing and exports, the United States houses a copious amount of corn and soy ending stocks.
“As the market continues to push higher, we are likely adding bushels back onto those balance sheets,” Grossman said.
United States growers will receive a better picture of ending stocks on March 29 when USDA releases its Prospective Planting and Quarterly Grain Stocks reports.