Corn, soybean export sales up on week
The USDA says corn and soybean export sales improved during the week ending July 2nd, with help from China as Beijing tries to meet purchase obligations under Phase One of the trade agreement with the U.S. China was the biggest buyer of old crop U.S. corn and soybeans, along with new crop soybeans, and China was also the leading purchaser of old crop cotton and sorghum. Pork exports were down on the week, but still larger than average. Mexico bought more than 9,000 tons and China purchased more than 8,000 tons, but also canceled on 4,500 tons. Beef export sales fell below 10,000 tons, but Japan, South Korea, and China each bought more than 1,000 tons. The USDA’s next set of supply and demand estimates is out Friday.
Physical shipments of corn were above what’s needed to meet USDA projections for the current marketing year. The 2020/21 marketing year got underway June 1st for wheat, while 2019/20 runs through the end of July for cotton and rice, the end of August for corn, sorghum, and soybeans, and the end of September for soybean products.
Wheat came out at 326,100 tons (12.0 million bushels). Mexico purchased 139,400 tons and the Philippines bought 73,000 tons. Just over a month into the 2020/21 marketing year, wheat sales are 277.8 million bushels, compared to 275.1 million early in 2019/20. A net reduction of 75,000 tons (-2.8 million bushels) for 2021/22 delivery occurred following cancellations by unknown destinations (67,000 tons) and Mexico (8,000 tons).
Corn was reported at 599,200 tons (23.6 million bushels), up 66% from the week ending June 25th and 30% higher than the four-week average. China picked up 407,200 tons and Colombia purchased 102,500 tons. In the final quarter of the 2019/20 marketing year, corn sales are 1.689 billion bushels, compared to 1.946 billion late in 2018/19. Sales of 409,300 tons (16.1 million bushels) for 2020/21 delivery were mainly to Mexico (121,900 tons) and unknown destinations (70,100 tons).
Sorghum sales were 53,900 tons (2.1 million bushels), 63% less than the previous week, but 3% more than the four-week average. China bought 50,900 tons and unknown destinations picked up 3,000 tons. At this point in the marketing year, sorghum sales are 165.8 million bushels, compared to 63.8 million this time last year. Sales of 137,000 tons (5.4 million bushels) for 2020/21 delivery were to unknown destinations (98,000 tons) and Japan (39,000 tons).
Rice sales were 21,600 tons, a decline of 13% from the week before, but a big jump from the four-week average. Colombia purchased 18,500 tons and Canada bought 1,600 tons. Nearing the end of the marketing year, rice exports are 3,332,900 tons, compared to 3,436,600 a year ago.
Soybeans were pegged at 952,200 tons (35.0 million bushels), significantly larger than the prior week and 60% above the four-week average. China picked up 461,400 tons and Indonesia purchased 131,000 tons. So far, this marketing year, soybean sales are 1.690 billion bushels, compared to 1.783 billion last year. Sales of 382,100 tons (14.0 million bushels) for 2020/21 delivery were primarily to China (192,000 tons) and unknown destinations (92,000 tons).
Soybean meal came out at 124,400 tons, a decrease of 13% on the week and 9% from the four-week average. Mexico bought 31,900 tons and Colombia picked up 25,900 tons. For the marketing year to date, soybean meal sales are 11,187,700 tons, compared to 11,318,800 a year ago. Sales of 73,500 tons for 2020/21 delivery were mostly to Honduras (17,600 tons) and Guatemala (12,800 tons).
Soybean oil was reported at 28,900 tons. Unknown destinations purchased 19,000 tons and the Dominican Republic bought 8,500 tons. Cumulative soybean oil sales are 1,218,200 tons, compared to 813,400 last year.
Upland cotton was pegged at 43,800 bales, down 35% from the previous week and 74% from the four-week average. China picked up 22,000 bales and Malaysia purchased 8,800 bales. 2019/20 cotton exports are 17,036,700 bales, compared to 15,316,000 in 2018/19. Sales of 6,700 bales for 2020/21 delivery were to Turkey (5,400 bales) and Vietnam (1,300 bales).
Net beef sales totaled 9,500 tons, 23% lower than the week before and 51% under the four-week average. The reported buyers were Japan (2,900 tons), South Korea (2,300 tons), China (1,000 tons), Mexico (700 tons), and Taiwan (600 tons). Shipments of 15,100 tons were 3% higher than the prior week and 15% above the four-week average, mainly to South Korea (5,400 tons), Japan (4,500 tons), Taiwan (1,200 tons), Canada (1,100 tons), and Hong Kong (1,000 tons).
Net pork sales totaled 31,500 tons, a week to week decline of 20%, but still 6% above the four-week average. The listed purchasers were Mexico (9,100 tons), China (8,100 tons), Japan (5,300 tons), Vietnam (2,000 tons), and Canada (1,700 tons). Shipments of 33,500 tons were an increase of 8% on the week and 7% from the four-week average, primarily to China (12,700 tons), Mexico (10,300 tons), Japan (3,000 tons), South Korea (2,300 tons), and Canada (2,000 tons).