Weekly meat export sales bearish


Weekly meat export sales bearish

The USDA says the week ending May 14th was a lackluster week for meat exports. Pork sales were a net reduction following a cancellation by China, but physical shipments of previously purchased pork were a marketing year high, mainly headed to China and Mexico. Beef sales were a marketing year low for the second consecutive week with below average shipments. China was the leading buyer of U.S. soybeans, cotton, and sorghum, also purchasing U.S. bean oil and beef, while corn and wheat exports were down on the week. The USDA’s next set of supply and demand estimates is out June 11th.

Physical shipments of corn, sorghum, and wheat were more than what’s needed 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 175,800 tons (6.5 million bushels), down 14% from the week ending May 7th and 39% lower than the four-week average. The Philippines purchased 59,000 tons and South Korea bought 37,700 tons. With just a couple of reporting weeks remaining in 2019/20, wheat sales are 975.8 million bushels, compared to 944.9 million late in 2018/19. Sales of 252,400 tons (9.3 million bushels) were mainly to unknown destinations (128,000 tons) and the Philippines (50,000 tons).

Corn was reported at 884,200 tons (34.8 million bushels), 18% less than the previous week and 10% below the four-week average. Japan picked up 332,600 tons and Mexico purchased 215,000 tons. At this point in the marketing year, corn sales are 1.554 billion bushels, compared to 1.864 billion this time last year. Net reductions of 29,400 tons (-1.2 million bushels) for 2020/21 delivery followed sales of 400 to 3,700 tons being offset following a cancellation on 34,500 tons by Mexico.

Sorghum sales were 83,100 tons (3.3 million bushels), a significant decline from the week before and 29% under the four-week average. China bought 131,500 tons, but unknown destinations canceled on 48,000 tons. Nearing the final quarter of the marketing year, sorghum sales are 144.6 million bushels, compared to 63.4 million a year ago. Net sales of 32,000 tons (1.3 million bushels) for 2020/21 delivery were to China (65,000 tons) with a cancellation by New Zealand (33,000 tons).

Rice exports were 113,300 tons, up sharply from both the previous week and the four-week average. Mexico picked up 80,300 tons and Honduras purchased 19,300 tons. Rice sales this year are 3,333,100 tons, compared to 2,950,800 last year.

Soybeans were pegged at 1,205,000 tons (44.3 million bushels), a jump of 99% on the week and 80% from the four-week average. China bought 737,400 tons and unknown destinations picked up 177,700 tons. So far, this marketing year, soybean sales are 1.526 billion bushels, compared to 1.682 billion a year ago. Sales of 464,000 tons (17.0 million bushels) for 2020/21 delivery were to China (462,000 tons) and Taiwan (2,000 tons).

Soybean meal came out at 198,800 tons, 96% above the week before and 59% more than the four-week average. The Philippines purchased 140,200 tons and the Dominican Republic bought 17,500 tons. For the marketing year to date, soybean meal sales are 9,837,100 tons, compared to 10,711,300 last year.

Soybean oil was reported at 62,100 tons. South Korea purchased up 22,000 tons and China bought 20,000 tons. Cumulative soybean oil sales are 1,084,100 tons, compared to 706,000 a year ago. Sales of 500 tons for 2020/21 delivery were to Mexico.

Upland cotton exports were 128,900 bales, a decline of 46% from the prior week and 51% from the four-week average. China picked up 153,600 bales and Turkey purchased 5,400 bales, but Bangladesh canceled on 16,300 bales. 2019/20 upland cotton sales are 16,291,200 bales, compared to 14,622,200 in 2018/19. Sales of 120,200 bales for 2020/21 delivery were primarily to China (79,200 bales) and Bangladesh (22,300 bales).

Net beef sales totaled 4,000 tons, down 4% on the week and 47% from the four-week average. The listed buyers were Japan (2,900 tons), South Korea (1,000 tons), Hong Kong (300 tons), China (200 tons), and the Philippines (200 tons), with cancellations by Mexico (400 tons) and Taiwan (100 tons). Physical shipments of 11,000 tons were 10% lower than the previous week and 16% less than the four-week average, mainly headed to Japan (4,000 tons), South Korea (2,700 tons), Hong Kong (1,400 tons), Canada (900 tons), and Taiwan (700 tons).

Pork had a net reduction of 5,800 tons. The reported purchasers were Japan (3,200 tons), Canada (1,000 tons), Nicaragua (800 tons), Mexico (700 tons), and South Korea (400 tons), with cancellations by China (12,600 tons) and Chile (700 tons). Physical shipments of 49,700 tons were considerably more than the prior week and up 36% from the four-week average, primarily to China (19,800 tons), Mexico (13,600 tons), Japan (6,100 tons), South Korea (4,100 tons), and Canada (2,000 tons).

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