Markets Finish Week on Fairly Busy Note

CHICAGO - Dec 8/06 - SNS -- International agricultural commodity markets are finishing the week on a relatively busy note, with South Korean flour mills buying wheat, while a major Taiwanese feedmill group rejected all offers of corn on one of its tenders.

Analyst at the Chicago Board of Trade (CBOT) said the USDA's weekly export sales report for corn may have been a little disappointing at only 812,700 metric tons (MT), which was towards the low end of trade expectations. Cumulative sales have already reached 46.5% of the USDA forecast for the season as compared to 40.3% on average over the last five years.

The fast pace leaves the USDA with the data to increase exports in Monday's USDA report but ideas that corn exports were more active earlier than normal this year due to the harvest rally has the trade believing that the USDA will keep exports near unchanged. Sales of 760,900 MT per week are needed to reach the USDA estimate.

Soybean export sales came in at 667,000 MT, at the low end of trade expectations. Cumulative sales have reached 54.3% of the USDA forecast for the season as compared to 60.7% on average over the last five years. Sales of 362,700 MT per week are needed to reach the USDA estimate.

Meal sales were 166,500 MT as compared to trade expectations between 125,000-175,000. Cumulative sales have reached 39.1% of the USDA forecast as compared to 46.0% on average over the last five years.

Oil sales were 48,400 MT (a marketing year high) as compared to trade expectations between 30,000-40,000. Cumulative sales have reached 37.0% of the USDA forecast as compared to 24.4% on average over the last five years.

Weekly export sales for U.S. wheat came in at 408,400 MT. the mid point of trade expectations. Cumulative sales have reached 62.3% of the USDA forecast as compared to 65.0% on average over the last five years. Sales of 353,000 MT per week are needed to reach the USDA estimate.

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