Neutral export sales, China makes more purchases

by | Jul 2, 2020 | 5 Ag Stories, News

For the second straight week, U.S. export sales were mediocre.

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 within the given range for corn, beans, wheat and meal,? McBride said. ?Nothing too exciting. We did have over a million ton of beans that were sold. Most of that was new crop and a lot of that was China, which was not actually reported to us on the daily sales. They are sliding them in there somehow, but we still need to see about a million tons per week to China in order to make that phase one deal work.?

McBride believes China will come in and continue to buy from the U.S. going forward.

?As we look at prices across the United States and throughout the world, we do have the cheapest beans out there and when it comes to shipping rates as well,? McBride said. ?We should be competitively priced even given the rally that we?ve seen over the last three or four days here.?

And, McBride notes that weather will continue to be the focus for producers moving ahead ? especially the forecast through the Independence Holiday weekend.

?As you look at the maps on Sunday, we?ll start to get an idea of what it looks like for the very first part of pollination across Iowa, Nebraska and Minnesota,? he said. ?If that heat and dryness comes in, that could be a reason to keep a little bit of support underneath this corn and bean market. At this point with Iowa having pretty good subsoil moisture we?re going to need to see some significant dryness and net drying effects.?

The next U.S. Export Sales Report will be released on Thursday, July 9th. This week?s report can be found here. You can listen to McBride?s full interview below.