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Outside market factors to trump lower export sales report, analyst says

Agriculture.com Staff 04/27/2006 @ 7:55am

A lower USDA export sales report for corn, soybeans and wheat, along with outside market influences are expected to be the main factors for lower trading on Thursday, one analyst said.

Shawn McCambridge, Prudential Securities, said China's announcement of increasing their lending rate by 0.27% is sending a ripple effect into the commodities market.

USDA, in its weekly export sales report, indicated net corn sales of 782,400 metric tons were 29 percent below the previous week and 13 percent under the prior 4-week average.

Despite lower corn sales this week, prior months sales have been strong, McCambridge said.

"We are still on pace to meet the USDA's 1.95 billion bushels of exports for the year," McCambridge said.

For soybeans, Net sales of 111,400 MT--a marketing-year low--were 43 percent under the week earlier and 60 percent below the prior 4-week average.

"World buyers transferring to South America's soybeans continues to happen, keeping U.S. exports lower. Going through the summer months, that will keep net soybean sales on the low side as well," McCambridge said.

USDA estimated weekly wheat exports at 164,200 metric tons, 22 percent below the previous week and 47 percent under the prior 4-week average.

"Buyers that don't need immediate supply are going to stay on the sidelines for awhile," McCambridge said. "The other buyers stay hand-to-mouth waiting to assess the wheat production worldwide. We have some problems in the U.S., but other production areas are faring quite well."

A lower USDA export sales report for corn, soybeans and wheat, along with outside market influences are expected to be the main factors for lower trading on Thursday, one analyst said.

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