US soft wheat sales hit records, soy exceeds targets

US soft wheat sales so far in 2022-23 have reached a new high for the period, reflecting the price competitiveness of crop globally, while 2021-22 soybean sales and shipments exceeded official export targets.

US soft red winter (SRW) wheat export sales totalled 92,200t in the week to 14 July, US Department of Agriculture (USDA) data show. While this was down from a multi-year high of 212,100t seven days earlier, cumulative outstanding sales and exports of crop since the start of the 2022-23 wheat season (June-May) have already reached 1.5mn t, up from 1.3mn t the same time a year earlier and a record for the period.

Mexico has been the largest buyer of SRW so far this season, with 493,100t of crop earmarked for the destination. This was followed by China at 143,200t.

SRW wheat has extended a competitive advantage to almost all key origins on a fob basis since June, tracking sharp losses in Chicago Board of Trade wheat futures. At the same time, the US crop could become increasingly competitive for deliveries into east Asia in particular, with rates for Panamax dry bulk carriers in the north Pacific falling to their lowest since early February amid reduced global dry bulk demand and shifting trade flows favouring Capesize vessels.

Meanwhile, overall wheat sales totalled 511,100t in the last reporting week, down from a near record of 1.02mn t a week earlier, but above the previous four-week average. Exports of crop remained weak at around 141,800t, down from 270,000t seven days ago.

As for soybeans, net sales for the 2021-22 crop turned positive for the first time in four weeks, with cancellations having outweighed new sales since mid-June. Net sales totalled 206,500t on 8-14 July, reaching their highest since early June, with China resuming purchases of crop for delivery in the current marketing season.

New sales last week meant that outstanding volumes awaiting shipment and exports from earlier this year reached a combined 59.6mn t. This implies that, in case of no cancellations and even without new sales later this season, US soybean exports in 2021-22 would exceed the USDA projection by around 500,000t.

And 2022-23 crop sales also recovered on the week to 255,500t from 114,000t seven days ago and their highest in four weeks. Sales were primarily concluded by buyers from China, Egypt and Mexico.

Tags: export, soybeans, US, wheat, sales, shipments, SRW, soft red winter wheat, soft wheat