Mixed week for the export numbers
China made several appearances in the weekly export sales report, even if purchases under Phase One of the trade agreement haven’t met expectations. The USDA says China was the biggest buyer of old crop U.S. soybeans and sorghum during the week ending May 28th, was the second biggest purchaser of old crop wheat and pork, and China and Hong Kong also bought U.S. beef. Overall, the week numbers look mixed, with above average sales for soybean meal, sorghum, and beef, but below average numbers for most other major commodities. The USDA’s next set of supply and demand estimates is out June 11th.
Physical shipments of corn were more than what’s needed weekly to meet USDA projections for the current marketing year, while wheat has already topped the mark, with just a few reporting days left in 2019/20 for that commodity. The 2020/21 marketing year for wheat officially started June 1st, while 2019/20 runs through the end of July for cotton and rice, the end of August for beans, corn, and sorghum, and the end of September for soybean products.
Wheat came out at 179,500 tons (6.6 million bushels), down 14% from both the week ending May 21st and the four-week average. Ecuador purchased 194,700 tons and China bought 74,000 tons, while unknown destinations canceled on 105,000 tons. With just a handful of reporting days left in 2019/20, wheat sales are 990.1 million bushels, compared to 949.5 million late in 2018/19. Sales of 437,300 tons (16.1 million bushels) for 2020/21 delivery were mainly to the Philippines (110,000 tons) and Nigeria (83,100 tons), with a cancellation by unknown destinations (61,600 tons).
Corn was reported at 637,500 tons (25.1 million bushels), 49% higher than the previous week, but 19% lower than the four-week average. Japan picked up 248,900 tons and Colombia purchased 214,700 tons. Nearing the final quarter of the marketing year, corn sales are 1.594 billion bushels, compared to 1.899 billion this time last year. Sales of 27,500 tons (1.1 million bushels) for 2020/21 delivery were primarily to unknown destinations (12,000 tons) and Colombia (7,000 tons).
Sorghum sales were 93,300 tons, 48% less than the week before, but 19% more than the four-week average. China bought 70,100 tons and unknown destinations picked up 22,000 tons. At this point in the marketing year, sorghum exports are 155.4 million bushels, compared to 61.4 million a year ago.
Rice exports of 28,600 tons, a big jump from the prior week, but a decline of 46% from the four-week average. Colombia purchased 12,000 tons and Mexico bought 8,700 tons. Rice sales are 3,358,200 tons, compared to 3,138,200 last year.
Soybeans were pegged at 495,200 tons (18.2 million bushels), down 23% from the previous week and 36% from the four-week average. China picked up 201,000 tons and Egypt purchased 189,400 tons, while unknown destinations canceled on 79,000 tons. So far, this marketing year, soybean sales are 1.567 billion bushels, compared to 1.715 billion a year ago. Sales of 607,400 tons (22.3 million bushels) for 2020/21 delivery were mostly to unknown destinations (329,000 tons) and China (264,000 tons).
Soybean meal came out at 558,900 tons, up sharply from both the week before and the four-week average. The Philippines bought 392,700 tons and Libya picked up 60,000 tons. For the marketing year to date, soybean meal sales are 10,523,100 tons, compared to 11,005,800 last year. Sales of 25,000 tons for 2020/21 delivery were mainly to Colombia (19,300 tons) and Thailand (3,200 tons).
Soybean oil was reported at 9,400 tons. Colombia purchased 7,000 tons and Honduras bought 2,200 tons, but South Korea canceled on 2,600 tons. Cumulative soybean oil sales are 1,150,100 tons, compared to 756,500 a year ago.
Upland cotton had a net reduction of 10,100 bales. Sales of 400 to 3,300 bales were more than offset by cancellations of 2,100 to 12,200 bales. 2019/20 upland cotton exports are 16,325,700 tons, compared to 15,093,200 in 2018/19. Sales of 12,400 bales for 2020/21 delivery were primarily to Vietnam (8,800 bales) and China (5,500 bales), but with cancellations by Honduras (6,100 bales) and Peru (2,200 bales).
Net beef sales totaled 12,300 tons, an increase of 7% on the week and 97% from the four-week average. The listed buyers were South Korea (4,300 tons), Japan (4,200 tons), Canada (1,500 tons), China (700 tons), and Hong Kong (700 tons), with cancellations by Chile (100 tons) and Vietnam (100 tons). Shipments of 9,600 tons were down 15% from the previous week and 18% from the four-week average, mostly to Japan (3,500 tons), South Korea (2,900 tons), Hong Kong (1,000 tons), Taiwan (800 tons), and China (300 tons).
Net pork sales totaled 17,300 tons, a decrease of 16% from the week before and 5% from the four-week average. The reported purchasers were Mexico (8,500 tons), China (3,400 tons), Japan (3,100 tons), Canada (800 tons), and South Korea (600 tons). Shipments of 31,300 tons were 9% lower than the prior week and 14% less than the four-week average, mainly to China (13,200 tons), Mexico (7,500 tons), Japan (4,300 tons), South Korea (1,900 tons), and Canada (1,400 tons).