Corn and Soybean Exports Remain Strong, as Export Sales Show Signs of Trouble

USDA is preparing to release it's October World Agricultural Supply and Demand Estimates (WASDE) report Tuesday, which will include an updated look at demand. While the actual export pace is showing strength, export sales are starting to slow, which could factor into USDA's decisions on what revisions will be made to overall demand.

Currently, actual exports are still running 26% ahead of the same time period last year, and with higher commodity prices, bulk export values are up 60%. USDA economist Bart Kenner says the sales increase is being led by corn, where the export value increased 122% and volume up 53%. 

"Soybeans are valued at $25.3 billion, up 68% from this time last year. Cotton exports were $6.1 billion, up 12%," says Kenner. 

Wheat exports are a mixed bag with value up 15% from last year, but export volume is down 4-percent.

While the current export shipment pace and values are strong, export sales continue to wane, which has one University of Illinois economist concerned. 

“In the month of September, which is sort of time to really make hay in terms of export sales, that month was slow,” Joe Janzen told U.S. Farm Report. “Some of that had to due with the issues in the Gulf where we saw the slowness of movement, but in terms of just making export sales, we saw really a slowdown in pace. And that means we've got to kind of pick that up somewhere else later on in the marketing year.”