United States grains inspected for export came in strong, despite rising trade tensions. A market analyst reviews the report’s findings and fills us in as to what is yet to come.
The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service recorded corn inspected for export at 1,668,835 metric tonnes. Zaner Ag Hedge market strategist Brian Grossman says Brazilian crop conditions have contributed to the strong corn exports.
“Corn – just shy of 1.7 million metric tonnes,” Grossman said. “That’s what we need to be seeing, as the Brazilian crop is under some pressure. We’ve found a lot of new interest coming back to the U.S. market, and last week’s WASDE report is showing that increase. We need to keep seeing numbers like this, but we have reason to believe that this pace will continue.”
Inspections for soybean exports also came in strong, at 820,000 metric tonnes. Grossman notes soybeans exports are still behind USDA’s projections for the marketing year. However, he believes soybean exports will end up reaching USDA’s target, if we can keeping making these strides.
“I am optimistic that we will keep this pace going, and that is based off of production,” Grossman said. “In the short term, we only have so many bushels of grain in this world. If nobody is willing to make their population go without, they will have to eventually come to the U.S. market. They may be able to put pressure on us and not buy as much, but that would still balance out in the global market.”