Export Inspections Neutral

By Darin Newsom
DTN Senior Analyst

OMAHA (DTN) — USDA’s weekly Export Inspections report for the week ended August 28 should be viewed as neutral for grain futures markets.

Corn weekly export inspections were 34.4 million bushels, below what was needed to reach USDA’s demand projection of 1.920 billion bushels. However, total inspections for the 2013-2014 marketing year were 1.843 bb, up 265% from the 696 mb reported for the same week the previous year. This is slightly above USDA’s projected year-to-year increase of 263% (1.92 bb vs. 731 mb in 2012-2013). This report could be viewed as neutral.

Soybean weekly export inspections were 1.4 mb for the week ending Thursday, August 28. This is below what was needed to reach USDA’s demand projection of 1.64 bb. Total inspections for the 2013-2014 marketing year were approximately 1.595 bb, 122% of last year’s 1.312 bb for the same week. USDA’s year-to-year projected increase is 124%. One key reason why inspections may have come up short is the lack of available supplies. This report should be viewed as neutral.

Wheat weekly export inspections were 28.4 mb for the week ending Thursday, August 28. This was well above the 17.6 mb needed this week to stay on pace with USDA’s demand projection of 925 mb. Total inspections for the 2014-2015 marketing year were 240 mb, about 70% of last year’s 342 mb for the same week. This is behind USDA’s projected year-to-year decrease of only 22% and could be considered neutral.

(CZ)