US soybeans net export sales up 285.38% on week as China resumes buying

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US soybean net export sales for the 2018-2019 marketing year were at a high of 2.835 million mt for the week ending December 13, up 285.38% from the previous week, Department of Agriculture data showed Thursday.

This week’s report reflects the first round of buying from China since the 25% tariff on US soybeans was implemented in July.

Since the 2018-2019 marketing year began September 1, total commitments — cumulative exports plus outstanding sales — were reported at 27.538 million mt, which is 30.1% below the same period last year. The total commitments represent 53.26% of the USDA’s 51.709 million mt estimate exports for the entire marketing year.

The highest volume sales were reported to China at 1.561 million mt, followed by Mexico at 324,349 mt and the Netherlands at 184,470 mt. Reductions of 231,578 mt were reported for unknown destinations.

Exports for the most recent week were nearly 1.338 million mt, 22.7% higher than the previous week and marked a marketing-year high. Total accumulated physical exports for the 2018-2019 marketing year rose to 15.414 million mt, 40.02% lower than the year-ago period, according to the USDA data.

The top soybean export destinations for the week were the Netherlands with 184,500 mt, Germany with 170,000 mt and Taiwan with 164,100 mt.

Net sales are considered a more appropriate indicator of the strength of the soybean market than the physical exports because they reflect new sales activity

spglobal.com

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