Soybeans were the big highlight in the latest U.S. Export Sales Report released Thursday morning.
According to commodities broker Greg McBride with Allendale, soybean exports for the week ending July 23rd were “extremely bullish.” Old crop soybeans had net sales of 257,800 metric tons, down 29 percent from the previous week and 45 percent from the prior four-week average. However, new crop bean exports were 3.3 million metric tons, primarily to China.
“We saw 3.6 million tons of beans sold last week between the old crop and the new crop,” McBride said. “That continues to look good for us and it improves the overall feeling of whether or not the U.S. and China trade deal is going to be fulfilled.”
McBride believes the increase in Chinese purchases will continue.
“What we’ve seen through almost the end of the year is the United States does have a price advantage over Brazil,” he said. “China should be looking to us. We did see that we made some more sales here (Thursday) morning. They weren’t soybeans, it was actually corn sales to China. It was the third largest sale of corn that we’ve ever booked. That was 1.9 million tons and that looks good for us as (China) continues to sell out of those state reserves.”
Corn exports for the week ending July 23rd saw old crop at 29,300 metric tons – a marketing year low – and new crop at 638,700 metric tons primarily for unknown destinations. McBride says Iowa producers will need to continue monitoring weather forecasts as we begin a new month.
“As we start to look at August, the weather continues to look like it will have spotty rains here and there,” McBride said. “That will keep the momentum going for a good crop. We have to think we will see increases on yield and production in the August WASDE Report. That could continue to keep prices in check, and maybe even push them down a little bit further.”
The next U.S. Export Sales Report will be released on Thursday, August 6th. McBride’s full interview can be heard below.