Good news of sorts

Published on: 10:41AM Aug 06, 2020

If it were not for the weekly export sales, it would seem there would be little else to talk about in the ag markets this morning. Sales all fell within the range of expectations for the week but regardless, were still quite solid for both corn and beans.  For the week ending July 30th, we sold a combined crop year total of 2,701,600 MT or 106.4 million bushels of corn.  Only 101,600 MT was for the current crop year with the balance of 2.6 MMT for next.  As you might have already guessed, China was the big player here with new crop purchases of 1.937 MMT, followed by unknown destinations with 276k and then Mexico taking 252.5k. We do know that South Korea has been in picking up some corn bargains this week, but it is doubtful we will see such solid number next week’s report.  Similar situation for beans as combined old and new crop sales tallied 1,750,200 MT or 64.3 million bushels.  Here we find 345,200 MT for the current crop year and 1,405,000 MT for next.  China did not represent as large a percentage of the new sales here as they accounted for 34% or 474k MT, followed by Mexico buying 351.9k and then unknown destinations for 212.5k.  Wheat sales were down 11% for the week coming in at 605,500 MT or 22.25 million bushels. China was actually the largest purchaser with 85k MT, followed by Indonesia taking 78k and Brazil 63.5k.  Looking at some of the other commodities, we find China buying 182.7k MT of sorghum, 8,600 MT of soy oil, 47,500 RB of cotton, 265,100 whole cattle hides, and 5,600 MT of pork.

The USDA did also announce another sale of beans to China this morning.  This time they purchased 126,000 MT for the 2020/21 crop year.  As long as we are on the subject of China, it is also worth pointing out that at their weekly auction of government reserves, the entire allotment of 3.999 MMT was purchased, again.

We have good news of sorts on the economic front as new weekly initial jobless claims, were down 249,000 from the previous week.  This marks the lowest weekly number since mid-March but at 1.186 million, is still over four times greater than it was at that time.  July unemployment data will be released tomorrow, which should be interesting.