China makes a splash in the weekly export numbers


China makes a splash in the weekly export numbers

Demand from China helped several U.S. commodities post week to week improvements in export sales. The USDA says that for the week ending July 9th, wheat exports were a marketing year high, with corn, sorghum, and pork all above the previous week’s levels, due in part to buying demand from China, which continues to try and meet Phase One trade deal purchase obligations. Beef export sales were also up on the week, led by solid sales to South Korea, Japan, and a handful of other nations. Old crop soybean export sales were down sharply on the week, but new crop sales were good, also led by China. The USDA’s next set of supply and demand estimates are out August 12th.

Physical shipments of corn and sorghum were more than what’s needed to meet USDA projections for the current respective marketing years. The 2020/21 marketing year for wheat 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 764,400 tons (28.1 million bushels), up sharply from the week ending July 2nd and 77% higher than the four-week average. China purchased 323,700 tons and Mexico bought 132,800 tons. Early in the 2020/21 marketing year, wheat sales are 305.9 million bushels, compared to 287.9 million in 2019/20.

Corn was reported at 981,100 tons (38.6 million bushels), considerably larger than both the previous week and the four-week average. China picked up 768,300 tons and Colombia purchased 109,800 tons, but unknown destinations canceled on 145,700 tons. Nearing the end of the 2019/20 marketing year, corn sales are 1.712 billion bushels, compared to 1.954 billion late in 2018/19. Sales of 655,400 tons (25.8 million bushels) for 2020/21 delivery were mainly to China (600,000 tons) and Japan (54,000 tons), with a cancellation by unknown destinations (62,000 tons).

Sorghum exports were 72,700 tons (2.9 million bushels), 35% above the week before and 50% more than the four-week average. China bought 135,100 tons, while unknown destinations canceled on 62,400 tons. For the marketing year to date, sorghum sales are 168.6 million bushels, compared to 64.9 million this time last year. Sales of 53,000 tons (2.1 million bushels) for 2020/21 delivery were to unknown destinations.

Rice sales were 18,500 tons, a decline of 14% from the prior week, but a jump of 56% from the four-week average. Haiti picked up 11,200 tons and Canada purchased 3,200 tons. Rice exports are 3,351,400 tons, compared to 3,445,700 a year ago.

Soybeans were pegged at 313,000 tons (11.5 million bushels), down 67% on the week and 46% from the four-week average. Indonesia bought 95,500 tons and Egypt picked up 75,000 tons. So far, this marketing year, soybean sales are 1.702 billion bushels, compared to 1.788 billion last year. Sales of 767,600 tons (28.2 million bushels) for 2020/21 delivery were primarily to China (389,000 tons) and unknown destinations (176,000 tons).

Soybean meal came out at 177,200 tons, up 43% from the previous week and 54% from the four-week average. Japan purchased 33,000 tons and Colombia bought 31,000 tons. At this point in the marketing year, soybean meal sales are 11,364,900 tons, compared to 11,383,600 a year ago. Sales of 27,800 tons for 2020/21 delivery were mostly to Honduras (12,000 tons) and El Salvador (6,300 tons).

Soybean oil was reported at 5,700 tons. Guatemala picked up 4,200 tons and Mexico purchased 800 tons. Cumulative soybean oil sales are 1,223,900 tons, compared to 825,700 last year.

Upland cotton had a net reduction of 17,500 bales as sales of 2,100 to 26,500 bales were more than offset by cancellations of 1,300 to 38,600 bales. 2019/20 upland cotton exports are 17,019,300 bales, compared to 15,370,100 late in 2018/19. Sales of 29,100 bales for 2020/21 delivery were mostly to China (38,600 bales) and El Salvador (4,000 bales).

Net beef sales totaled 27,800 tons, a significant increase from the week before and 68% higher than the four-week average. The listed buyers were South Korea (7,900 tons), Japan (6,300 tons), Mexico (3,600 tons), Taiwan (2,500 tons), and Canada (2,000 tons). Shipments of 15,500 tons were up 3% from the prior week and 9% from the four-week average, mainly to Japan (5,200 tons), South Korea (5,100 tons), Taiwan (1,200 tons), Canada (1,000 tons), and Mexico (800 tons).

Net pork sales totaled 38,500 tons, up 22% from the previous week and 16% above the four-week average. The reported purchasers were Mexico (10,100 tons), China (8,000 tons), Canada (5,700 tons), Japan (3,700 tons), and South Korea (3,300 tons). Shipments of 29,300 tons were down 13% on the week and 8% from the four-week average, primarily to China (12,300 tons), Mexico (7,600 tons), Japan (2,700 tons), Canada (2,100 tons), and South Korea (1,600 tons).