Home Market Chinese Soybean Demand Declines, but Exports Remain High

Chinese Soybean Demand Declines, but Exports Remain High

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Soybean exports remained above 2 million metric tons (MT) for the fifth consecutive week, although fell 27% from last week. Despite soybean exports declining over the past two weeks, they are still well above annual averages for this time of year. Corn sales and exports increased from last week, well above analyst estimates. Wheat sales and exports decreased from last week. 

Expected global winter wheat production for 2015 has been declining over the past two weeks. News from Australia, the Black Sea region, and the U.S. have all been pessimistic about the impact the current weather conditions will have on this year’s crops. In contrast, reports about the South American corn and soybean crops have been positive.
 
Weekly net corn sales were 1,170,700 MT, a 24% increase from last week and a 37% increase from the prior 10-week average. Increases were reported from Mexico, Japan, Peru, South Korea, and Costa Rica. Decreases were reported from El Salvador, the French West Indies, Taiwan, and Haiti. Exports were 746,400 MT, a 21% increase from last week and a 5% increase from the prior 10-week average. The primary destinations were Mexico, Peru, Japan, Egypt, Canada, and Colombia.

Weekly net soybean sales were 1,179,700 MT, a 21% decrease from last week and a 21% decrease from the prior 10-week average. Increases were reported from China, Germany, Taiwan, the Netherlands, Japan, Spain, and Mexico. Decreases were reported from unknown destinations Israel, Greece, and Thailand. Exports were 2,037,100 MT, a 27% decrease from last week, but an 11% increase from the prior 10-week average. Primary destinations were China, Germany, the Netherlands, Costa Rica, Vietnam, and Spain.

Weekly net wheat sales were 319,200 MT, a 26% decrease from last week and a 22% decrease from the prior 10-week average. Increases were reported from Japan, Mexico, Panama, South Korea, and the Philippines. Decreases were reported from Brazil, unknown destinations, and the French West Indies. Exports were 449,600 MT, a 13% increase from last week, but an 11% increase from the prior 10-week average. Primary destinations were Japan, Peru, the Philippines, El Salvador, Panama, and Italy.