Weekly Export Sales Within Expectations

Published on: 13:30PM May 17, 2018

Headlines

Grains trading higher on optimism toward US/China trade talks. Wheat higher on crop damage concerns. Ethanol production stronger again this week. Private exporters reported to the USDA export sales of 132,000 metric tons of soybeans for delivery to unknown destinations during the 2017/2018 marketing year.

 

U.S. to hold trade talks with China on Thursday and Friday

Treasury secretary Mnuchin is hosting trade talks with Chinese Vice Premier Liu today and tomorrow. Many speculate that Liu is coming to the U.S. to make a deal. However, rhetoric on Tuesday from U.S. trade representative to China indicated that the two countries are still “far apart.”

 

Wheat Trading Higher

Chicago and Kansas winter wheat are both trading higher this morning after reports of crop damage from high wind and hail from storms in Kansas and Colorado. Australia weather continues to be very dry during fall planting. Recent satellite imagery shows record lows for vegetation density across all of Australia’s major wheat growing region.

 

Ethanol Production

Ethanol production increased to 1.058 million bpd from 1.040 mbpd last week. Weekly production was 3% above LY during the same week. LY production levels declined from late May through June which will provide further opportunity for TY ethanol production to make significant gains over LY. Ethanol stocks declined this week to 903 million gallons from 922 million. Ethanol stocks usually reach a peak in April and decline until August during the summer driving months.  The decline in ethanol stocks from the seasonal peak to mid-May was 11% this year, which is significantly larger than 2017 when ethanol stocks were reduced by only 4%.

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Weekly Exports

Export sales were mostly within expectations this week with soymeal beating expectations.

Wheat sales were up 79% from last weeks terrible performance. Corn sales were up 42% from last week and were on the high side of analyst expectations. Soybean sales were down 20% from last week and narrowly missed expectations to the low side.

 

 

Actual

Estimated

Last Week

Wheat-OC

63

0-200

35

Wheat-NC

131

100-300

48

Corn-OC

985

700-1,000

695

Corn-NC

129

50-200

90

Soybeans-OC

281

300-600

354

Soybeans-NC

224

100-400

278

Soymeal-OC

376

100-300

90

Soymeal-NC

45

0

-6


 

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