China biggest weekly buyer of several commodities
China showed up several times in the weekly export sales report. The USDA says China was the leading buyer during the week ending May 7th for soybeans, corn, and cotton, also purchasing U.S. wheat. China was also the biggest buyer of U.S. pork at just over 6,000 tons, but also canceled on 18,500 tons, and was the top purchaser of sorghum, but export sales for sorghum were a marketing year low after a cancellation by unknown destinations. Beef and rice export sales notched new marketing year lows as well. China has fallen short of expected purchase levels under the Phase One trade agreement with the U.S., leading to new tensions over tariffs between the world’s two largest economies. The USDA’s next set of supply and demand estimates is out June 11th.
Overall, corn, soybean, soybean product, and wheat exports were within pre-report estimates. Physical shipments of corn and wheat were more than what’s needed weekly to meet USDA projections for the current marketing year. The 2019/20 marketing year started June 1st for wheat, August 1st for cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.
Wheat came out at 203,500 tons (7.5 million bushels), down 17% from the week ending April 30th and 28% lower than the four-week average. The Philippines purchased 61,900 tons and Yemen bought 55,800 tons, but unknown destinations canceled on 172,500 tons. With less than a month left in the 2019/20 marketing year, wheat sales are 969.3 million bushels, compared to 943.1 million in 2018/19. Sales of 149,800 tons (5.5 million bushels) for 2020/21 delivery were mainly to Chile (47,000 tons) and unknown destinations (24,500 tons).
Corn was reported at 1,073,200 tons (42.3 million bushels), up 39% from the previous week and 14% higher than the four-week average. China picked up 371,000 tons and Mexico purchased 239,600 tons, while unknown destinations canceled on 160,700 tons. Nearing the final quarter of the marketing year, corn sales are 1.519 billion bushels, compared to 1.846 billion a year ago. Sales of 554,500 tons (21.8 million bushels) for 2020/21 delivery were primarily to China (315,000 tons) and Mexico (193,900 tons).
Sorghum had a net reduction of 15,300 tons (-600,000 bushels). China bought 70,000 tons and Japan picked up 300 tons, but unknown destinations canceled on 65,000 tons and Mexico canceled on 20,600 tons. At this point in the marketing year, sorghum sales are 141.3 million bushels, compared to 63.5 million this time last year. Sales of 65,000 tons (2.6 million bushels) for 2020/21 delivery were to China.
Rice sales were 28,200 tons, a decline of 54% from the week before and 41% from the four-week average. Haiti purchased 15,300 tons and South Korea bought 3,300 tons. Rice exports are 3,219,800 tons, compared to 2,939,900 a year ago.
Soybeans were pegged at 655,500 tons (24.1 million bushels), steady on the week and 13% larger than the four-week average. China picked up 274,900 tons and Egypt purchased 111,600 tons. So far, this marketing year, soybean sales are 1.483 billion bushels, compared to 1.662 billion last year. Sales of 440,000 tons (16.2 million bushels) for 2020/21 delivery were to China (374,000 tons) and unknown destinations (66,000 tons).
Soybean meal came out at 101,400 tons, 23% less than the prior week and 27% below the four-week average. Colombia bought 33,000 tons and unknown destinations picked up 16,000 tons. For the marketing year to date, soybean meal sales are 9,638,200 tons, compared to 10,523,200 a year ago. Sales of 18,800 tons for 2020/21 delivery were mostly to Colombia (9,000 tons) and unknown destinations (5,000 tons).
Soybean oil was reported at 6,700 tons. The Dominican Republic purchased 3,000 tons and Mexico bought 2,700 tons. Cumulative soybean oil sales are 1,022,000 tons, compared to 696,900 last year. Sales of 2,800 tons for 2020/21 delivery were to Mexico.
Upland cotton sales were 238,100 bales, 36% less than the previous week, but 50% more than the four-week average. China picked up 198,000 bales and Vietnam bought 19,200 bales. 2019/20 upland cotton exports are 16,162,400 bales, compared to 14,240,800 in 2018/19. Sales of 93,300 tons were primarily to China (68,200 bales) and Vietnam (23,800 bales).
Net beef sales totaled 4,200 tons, down 20% on the week and 64% lower than the four-week average. The listed purchasers were Japan (1,500 tons), Taiwan (1,400 tons), Hong Kong (500 tons), Canada (200 tons), and Indonesia (200 tons). Shipments of 12,200 tons were 3% less than the previous week and 15% below the four-week average, mainly headed to Japan (3,900 tons), South Korea (3,500 tons), Canada (1,300 tons), Hong Kong (1,100 tons), and Taiwan (1,100 tons).
Net pork sales totaled 10,800 tons, a decrease of 77% from the week before and 76% from the four-week average. The reported buyers were China (6,100 tons), Japan (2,100 tons), Mexico (1,400 tons), Canada (1,100 tons), and Vietnam (300 tons), with cancellations by Colombia (200 tons), the Philippines (200 tons), South Korea (200 tons), and Chile (100 tons). Shipments of 21,800 tons were a decline of 45% from the prior week and 46% from the four-week average, primarily to China (12,700 tons), South Korea (2,100 tons), Japan (1,800 tons), Mexico (1,700 tons), and Canada (800 tons).