The U.S. Department of Agriculture released its weekly U.S. Export Sales Report on Thursday.
Allendale commodity broker Greg McBride says data for the week ending April 22nd shows mostly neutral sales overall, with a bullish surprise for old crop soybeans.
“They were better than what we’ve seen for the most part when it comes to corn, wheat, meal, and bean oil,” McBride said. “Beans were actually friendly. We did see a higher-than-expected entry there at 731,000 tons of beans total sold. The old crop was actually about 300,000 tons. Starting to work our way back up a little bit. We were looking for anywhere from a net cancelation of 100,000 to positive 200,000. At this point, we’ll take these numbers. After the last few weeks and seeing some lower numbers, this gives us a shot in the arm after seeing what we’ve done this week in prices, maybe that gives us a little reason to stabilize.”
Total corn exports on the week were 1.07 million metric tons, much higher than last week’s 417,000 tons. McBride offers advice to Iowa growers as planting season continues.
“The big thing is that if you’ve got old crop, take a look at that,” said McBride. “It does make sense to make some sales. Shoot, we’re sitting near $7 on that May contract which goes into delivery this week. The July is sitting at $6.50. Those are still very good prices. Same thing on the bean side of things. When it comes to new crop, there is some reason to have some protection on at this point or make some cash sales. It’s completely up to you. I think the best thing is to makes sure you’re getting something done and taking advantage of these high prices while we have them. We know they don’t always stick around, so that’s something we need to be cognizant of.”
The next U.S. Export Sales Report will be released on Thursday, May 6th. The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.