Underwhelming Export Sales Pressure Grain, Soybean Futures
November 24 2017 - 3:11PM
Dow Jones News
By Benjamin Parkin
Grain and soybean futures were down Friday as export sales fell
short of expectations.
The U.S. Department of Agriculture said exporters sold a total
903,600 metric tons of soybeans and 200,500 tons of wheat in the
week ended Nov. 16, both below the range of pre-report
estimates.
Wheat futures fell to the lowest point in more than 10 weeks.
December-dated contracts at the Chicago Board of Trade slid 1.7% to
$4.15 3/4 a bushel.
CBOT January soybean futures fell 0.4% to $9.93 1/4 a
bushel.
Soybean sales were at a low point for the marketing year, said
Brian Hoops of Midwest Market Solutions, which began Sept. 1.
Analysts questioned whether the U.S. would be able to export as
many soybeans as previously forecast. With Brazil and Argentina due
to harvest new crops next year, they say it will become
increasingly difficult for exporters to catch up.
Exporters have typically sold 65% of their final shipments by
week 11 of the marketing year, said Arlan Suderman of INTL FCStone.
This year they have only sold 55% of the USDA's target.
"That pace is unsustainable if we don't soon see sales
strengthen notably," Mr. Suderman said.
Corn sales of 1.106 million tons were within the range of
expectations, according to the USDA, along with soybean oil sales.
Soybean meal sales beat estimates.
CBOT December corn futures fell 0.9% to $3.42 1/4 a bushel.
Write to Benjamin Parkin at benjamin.parkin@wsj.com
(END) Dow Jones Newswires
November 24, 2017 14:56 ET (19:56 GMT)
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