This marketing year, the rhythm of the rainfall, rising input costs and robust supply punctuated by debates in Washington left many farmers waiting for good news. The weekly U.S. Department of Agriculture export sales report was the next bit of strong news for demand.

Corn and soybeans posted strong sales last week for both current-crop sales and new-crop bookings for the upcoming marketing year. Wheat exports also increased last week, indicating global demand for U.S. wheat is holding steady even with a flood of foreign supply.

In its latest weekly export sales report, the USDA’s Foreign Agricultural Service said corn export sales for the week that ended Aug. 7 were more than 1.2 million metric tons, including new-crop sales and shipments. Soybeans sales for the week jumped above 1.4 million metric tons, while wheat export sales for the week were just over 400,000 metric tons. The sales were well above trade estimates, and soybeans were lifted by robust new-crop business from China, the European Union and newly open Asian markets.

The strong sales continued a trend seen in late July when a mix of competitive U.S. pricing, weather, and logistics concerns in other exporting countries kick-started buying. Dry conditions in central and southern Brazil and ongoing logistics problems in the Black Sea region have also opened the door for some short-term U.S. exports to fill in supply gaps.

Several factors underpinned the export demand. Most of the increased business is due to price. A drop in U.S. futures in recent weeks has made grain more attractive to many importers, particularly those with tight budgets. A series of supply issues also have come into play, from crop concerns in Brazil, where the second-crop corn harvest has been dogged by hot and dry weather, to dryness and poor yields in parts of Russia and Ukraine. Both countries have dealt with inconsistent weather and logistics snags in the Black Sea.

Exchange rates have also been a factor as a relatively soft U.S. dollar against many of the currencies of key importing countries made contracts more stable, encouraging forward buying. With soybeans in particular, strong demand from China has been another foundation of the export sales. Soybean exports have been particularly strong in recent months and China remains one of the key anchors in the global export picture as it works to rebuild its hog herd and expand poultry production.

Exports could also influence storage decisions. If the level of export business is expected to continue at a strong pace, the idea of holding onto grain for later delivery could become more appealing. On the other hand, when export sales jump unexpectedly, some farmers will sell and ship their grain, quickly moving it out of the bin and opening up space ahead of harvest.

For livestock producers who use corn, soybeans and wheat as feed, strong exports are a mixed blessing. A healthy market is good for the farm economy, but stronger demand overseas can tighten domestic supplies and lift feed costs, especially if some corn and soybean acres end up being turned into export business.

Exports can also have an impact on production planning over the longer term. Healthy global demand may encourage a farmer to plant more acres of a crop to capture strong prices, while others may shift to a crop that has more export business or less export competition.

Export demand can also create the window for strategic sales when prices are right, especially for farms that have some unsold bushels and room to market additional production in the crop picture for 2025. Forward contracts offer the potential to lock in a price and margin for some of that unsold bushel in a way that protects against downside while giving farmers some upside if markets rally further in 2025.

Exports do not take place in a vacuum, of course. Brazil, Argentina, Ukraine, Russia and the European Union all compete with U.S. farmers for the same customers. Brazil’s record soybean crop earlier this year has given it a huge position in the first half of 2025, and corn supplies have remained robust, but hot and dry weather in the country’s second-crop corn region has created opportunities for U.S. exports.

In wheat, Russia has been the low-cost supplier of choice for many markets in recent years, but quality problems after weather damage may begin to turn some buyers back toward the United States. Export opportunities remain very limited in Ukraine due to ongoing concerns about shipping grain from the Black Sea, which can create sporadic periods of buyer anxiety when logistics tighten up.

Competition with other exporting countries is another reason that U.S. farmers and exporters have to be ready to move quickly when the opportunity presents. Those windows can come in the form of weather issues in a competitor country or a trade policy shift that suddenly changes the flow of imports.

Row-crop producers, in particular, may want to keep an eye on their marketing plans in light of recent export business. If a significant portion of the crop is unsold and the farm’s production plan leaves room to sell more production, this window could provide an opportunity to start adding forward contracts at a profitable price. Export rallies can be short-lived, so locking in incremental gains while demand is strong could help smooth out price risk exposure for the upcoming marketing year.

Producers with multiple sales channels at their disposal, including local elevators, processor facilities and river terminals, also could have an opportunity to negotiate better terms as export demand tightens the competition for grain. In some cases, moving grain a little further to reach a buyer with more direct ties to export channels can pay for itself many times over in the form of a net gain.

Export sales are a leading indicator but also a volatile one. Tariffs, currency spikes and geopolitical events can all change buying patterns overnight. A strong rebound in production from competitor countries, especially in corn and soybeans, could also quickly pull away international business.

Domestic logistics also can limit U.S. exporters’ ability to get grain to market quickly if rivers are low, rail is congested or ports are delayed. The ability to meet buyer delivery deadlines can make the difference between profit and loss when it comes to export business. Monitoring those factors as well as keeping a close relationship with a farm’s grain merchandiser can help reduce the risk of being blindsided when logistical issues hit.