Good week for beef export sales
The USDA reports the week ending June 18th was a mostly mixed week for U.S. export sales. The big bright spot was beef at more than 24,000 tons, up 52% from the four-week average, with significant sales to South Korea and Japan, along with a few other key export markets. Pork was down on the week at just over 24,000 tons, but a little bit above average, primarily headed to Mexico and China. Old crop corn and soybean export sales were below average, while soybean meal hit a marketing year low and rice and sorghum had net reductions. China was the biggest buyer of old and new crop soybeans and cotton, and old crop sorghum. The USDA’s next set of supply and demand estimates is out July 10th.
Corn and wheat shipments were more than what’s needed to meet USDA projections for the current respective marketing years. The 2020/21 marketing year started June 1st for wheat, 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 518,700 tons (19.1 million bushels). Japan purchased 88,000 tons and Nigeria bought 83,100 tons. Less than a month into the 2020/21 marketing year, wheat sales are 251.8 million bushels, compared to 255.3 million in 2019/20.
Corn was reported at 461,700 tons (18.2 million bushels), up 29% from the week ending June 11th, but down 11% from the four-week average. Mexico picked up 295,700 tons and Peru purchased 87,400 tons, but unknown destinations canceled on 180,500 tons. In the final quarter of the 2019/20 marketing year, corn sales are 1.652 billion bushels, compared to 1.919 billion in 2018/19. Sales of 77,000 tons (3.0 million bushels) for 2020/21 delivery were mainly to Costa Rica (59,600 tons) and Taiwan (11,000 tons).
Sorghum had a net reduction of 1,000 tons. China bought 59,000 tons, but unknown destinations canceled on 60,000 tons. For the marketing year to date, sorghum sales are 157.9 million bushels, compared to 61.4 million this time last year.
Rice had a net reduction of 13,900 tons. Sales of 1,000 to 3,300 tons were more than offset by a cancellation on 24,600 tons by Nicaragua. Rice exports are 3,286,400 tons, compared to 3,329,000 a year ago.
Soybeans were pegged at 601,900 tons (22.1 million bushels), 12% higher than the previous week, but 10% lower than the four-week average. China picked up 172,500 tons and unknown destinations purchased 92,000 tons. So far, this marketing year, soybean sales are 1.646 billion bushels, compared to 1.749 billion last year. Sales of 560,700 tons (20.6 million bushels) for 2020/21 delivery were primarily to China (393,000 tons) and unknown destinations (66,000 tons).
Soybean meal came out at 70,200 tons, 43% under than the week before and 72% below the four-week average. Canada bought 15,800 tons and Morocco picked up 13,000 tons. At this point in the marketing year, soybean meal sales are 10,920,300 tons, compared to 11,256,700 a year ago. Sales of 12,000 tons for 2020/21 delivery were mostly to Ecuador (12,000 tons), Guatemala (500 tons), and the Philippines (500 tons), with a cancellation by Mexico (1,300 tons).
Soybean oil was reported at 20,500 tons. Unknown destinations purchased 15,000 tons and Guatemala bought 6,200 tons. Cumulative soybean oil sales are 1,186,500 tons, compared to 785,200 last year.
Upland cotton was pegged at 102,700 bales, 5% more than the prior week, but 23% less than the four-week average. China picked up 94,500 bales and Turkey purchased 4,100 bales. 2019/20 upland cotton sales are 16,925,700 bales, compared to 15,121,100 in 2018/19. Sales of 67,900 bales for 2020/21 delivery were mainly to China (36,500 bales) and Vietnam (33,400 bales).
Net beef sales totaled 24,400 tons, an increase of 21% on the week and 52% from the four-week average. The listed buyers were South Korea (8,200 tons), Japan (5,900 tons), Taiwan (2,700 tons), Mexico (2,300 tons), and Hong Kong. Shipments of 18,600 tons were considerably larger than the previous week and an 84% jump from the four-week average, primarily headed to Japan (6,400 tons), South Korea (5,400 tons), Canada (1,800 tons), Mexico (1,300 tons), and Taiwan (1,300 tons).
Net pork sales totaled 24,100 tons, down 38% from the week before, but up 3% from the four-week average. The reported purchasers were Mexico (8,100 tons), China (4,500 tons), Japan (2,500 tons), Australia (1,900 tons), and Canada (1,500 tons). Shipments of 29,500 tons were 12% lower than the prior week and 10% under the four-week average, mostly on the way to China (10,300 tons), Mexico (8,800 tons), Japan (3,100 tons), Canada (2,400 tons), and South Korea (2,300 tons).