Market News & Headlines >> Fast Soybean Export Pace Boosts Competition For Supplies
Large U.S. soybean sales for 2020/21 delivery are being shipped out at a rapid pace, spurring stiff competition for supplies in the U.S. cash market in the face of harvest.
USDA on Friday reported U.S. soybean export shipments for the week ended Oct. 8 of 87.6 million bushels up from 76.0 million a week earlier. U.S. soybean export shipments for 2020/21 to date through Oct. 8 totaled 331.3 million bushels, an increase of 86% over a year earlier. Year-to-date shipments of U.S. soybeans to China totaled 230.8 million bushels or 69.7% of total shipments.
USDA on Monday reported U.S. soybean export shipments for the week ended Oct. 15 totaled 79.9 million bushels, down 9.2 million from a week earlier, but up 39.2 million bushels or 63.4% versus a year earlier. Inspections destined for China totaled 64.0 million bushels or 80% of the total weekly inspections.
U.S. soybean export inspections for 2020/21 to date through Oct. 15 totaled 423.2 million bushels, 77.4% above a year earlier.
The fast shipping pace has boosted CIF basis bids for delivery of soybeans to the U.S. Gulf, with a slow harvest pace in the Delta likely a contributing factor. The CIF basis bid for October delivery of soybeans to the Gulf on Monday afternoon was pegged by Reuters News Service at 87 cents over Nov. soybean futures, 11 cents stronger than a week earlier.
Strong competition for supplies between exporters and processors is also underpinning basis bids at Midwest processing locations. On Monday, central Illinois processor spot soybean basis bids strengthened by 5 to 10 cents, USDA reported.