A Lackluster Weekly Export Sales Report

The weekly export sales report shows lower than expected corn sales at 227,000 metric tons. Traders were expecting export sales to range from 350,000 tons to 800,000 tons. Wheat export sales totaled more than 229,000 tons. Soybean export sales are more than 777,000 for the week. Both wheat and soybean export sales are within trade expectations. Zaner Ag Hedge Chief Market Strategist Ted Seifried calls the report lackluster. “It’s the time of the year where we’d expect to see bigger export sales on the weekly report.” Demand concerns are trickling into the grain markets. “The dollar is going higher again. That’s a concern. Stock markets are lower. The upcoming USDA reports are going to have many moving parts. Beginning stocks are going to be lower for corn, but higher for soybeans. That begs the question, what will USDA do on yield? How does that play into a balance sheet?” Bigger beginning stocks and possible demand reduction may not offset a lower yield. The U.S. could be looking at a bigger soybean carryover than expected.