U.S. Export Sales Have Not Slowed
- Soybean export sales for the week ended January 14 were up sharply from the previous week at 66.8 million bushels, and were the largest in 13 weeks.
- China purchased 17.9 million bushels while another 14.6 million bushels were switched from unknown destinations.
- Total soybean purchases this year by China are now at 1,264 million bushels, compared to 426 million last year.
- Corn export sales were greater than expected at 56.6 million bushels.
- There were no sales reported to China during the week, while Mexico and Japan were again the biggest buyers.
- Wheat export sales of 12.1 million bushels were lower than expected as US prices remain uncompetitive to many destinations.
- 陆地棉292400运行包的销售down 10% from the previous week, but nearly unchanged from the prior 4-week average.
FBN’sTake OnWhat It Means :China continues to buy US beans due to concern about Brazilian harvest delays and potential for crop damage with untimely excessive rainfall. China’s record demand will likely continue to underpin grain prices in general.
U.S. Row Crop Acreage Projected Higher
- IHS Markit (Informa) forecast 2021/22 corn area at 94.2 million, up sharply from 91.1 million last month and 90.8 million last year.
- Soybean acreage was projected at 90.1 million, compared to 89.4 million previously and 83 million last year.
- Soybean plus corn acres of 184.3 million would be record large, eclipsing the previous record 181 million in 2017.
- Spring wheat planted area was projected at 11.5 million acres, down from 11.7 in December and 12.25 million last year.
- USDA reported final 2020 Conservation Reserve Program enrollment at 20.8 million acres, which was down from 22 million in 2019.
- USDA will next project acreage mix and full 2021/22 balance sheets during its Outlook Forum on February 18–19.
FBN’sTake On What It Means:Additional acreage is expected in row crops this spring given prices near the highest levels of the last several seasons. However, even though trend yields and more acres could result in a record bean crop, the projected balance sheet remains tight, and leaves little room for any weather issues through the US growing season.
FBN Market Advisoryservices are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory (NFA ID: 0508695)
The risk of trading futures and options can be substantial and may not be suitable for all investors. Past performance is not necessarily indicative of future results.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.
