Soybean Export Sales Finish Off the Year Strong

Published on: 08:20AM Sep 05, 2014

 A slight bounce in the grain market was observed in the overnight session with corn up 2 cents soybeans up 5 ½ cents and wheat up 4 ¼ cents. Kansas City wheat pushed 6 ¼ cents higher and spring wheat was up 6 cents going into the morning pause. The dollar is down slightly in the overnight session after a sharp rally in yesterday’s trade session.  

Export sales were very weak for wheat which only recorded 168,800 metric tons which was down 56% from the week before. Old crop corn had net reductions of 7,500 metric tons which was within analyst expectations of -100,000 to +100,000 metric tons. Old crop corn finished off the marketing year on par with the USDA’s August export sales forecast.  New crop corn sales were recorded at 525,000 metric tons which was on the low side of expectations.  

Old crop soybean sales saw net reductions of 87,700 metric tons which was within analyst expectations. With this week being the final export sales figure for the 13/14 marketing year, soybeans finished off 35 million bushels ahead of the August export sales estimate. Grain Hedge expects a further revision to the old crop balance sheet to reflect the better than expected old crop export sales pace in the September 11th WASDE report. New crop soybean sales missed analyst expectations to the low side booking 869,000 metric tons with analysts expecting between 900,000 and 1,100,000 metric tons sold this week.

Yesterday’s ethanol production figure once again showed strong corn usage by ethanol facilities for the week. Production averaged 921,000 barrels per day, up 8,000 from the previous week. Ethanol crush margins remain very strong across the grain belt, with margins in Eastern Iowa near $3.19 per bushel. Ethanol prices have climbed 1% percent in the state since July 4th, while cash corn prices have fallen 11%. Ethanol facilities remain aggressive bidders of old and new crop corn.