Strong week for new crop soybean export sales

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Strong week for new crop soybean export sales

The USDA says China bought more than 100 million bushels of new crop U.S. soybeans during the week ending August 6th. China was also the biggest buyer of old and new crop sorghum and new crop cotton, while also 1,900 tons of U.S. beef, but cancelling on 8,800 tons of pork. Corn and wheat sales were within pre-report estimates and soybean oil notched a marketing year low. The U.S. and China are scheduled to discuss the Phase One trade deal this weekend. The USDA’s next set of supply and demand estimates is out September 11th.

Physical shipments of sorghum and soybeans were more than what’s needed to meet USDA projections for the current marketing year. The 2020/21 marketing year got underway June 1st for wheat and August 1st for cotton and rice, while 2019/20 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.

Wheat came out at 367,900 tons (13.5 million bushels), down 39% from the week ending July 31st and 45% lower than the four-week average. South Korea purchased 117,900 tons and Japan bought 68,600 tons, while unknown destinations canceled on 52,400 tons. Just over two months into the 2020/21 marketing year, wheat sales are 389.2 million bushels, compared to 361.1 million in 2019/20.

Corn was reported at 377,200 tons (14.8 million bushels), up sharply from the previous week and 18% higher than the four-week average. South Korea picked up 125,000 tons and Japan purchased 79,300 tons, but unknown destinations canceled on 97,000 tons. With less than a month left in the 2019/20 marketing year, corn sales are 1.739 billion bushels, compared to 1.968 billion late in 2018/19. Sales of 533,100 tons (21.8 million bushels) for 2020/21 delivery were mainly to Colombia (176,500 tons), Mexico (165,200 tons), and unknown destinations (129,700 tons).

Sorghum sales were 282,400 tons (11.1 million bushels), significantly larger than both the week before and the four-week average. China bought 348,300 tons and unknown destinations canceled on 66,000 tons. At this point in the marketing year, sorghum sales are 182.4 million bushels, compared to 68.0 million a year ago. Sales of 527,500 tons (20.8 million bushels) for 2020/21 delivery were to China (348,000 tons) and unknown destinations (179,500 tons).

New crop rice sales were 6,300 tons. Mexico picked up 2,300 tons and Saudi Arabia purchased 1,600 tons. 2020/21 rice exports are 351,900 tons, compared to 733,200 early in 2019/20. The USDA says 2019/20 sales totaled 3,136,500 tons, 2% more than in 2018/19.

Soybeans were pegged at 570,100 tons (20.9 million bushels), 65% above the prior week and a jump of 96% from the four-week average. China bought 420,500 tons and the Netherlands picked up 144,300 tons, but unknown destinations canceled on 191,000 tons. So far, this marketing year, soybean sales are 1.746 billion bushels, compared to 1.786 billion this time last year. Sales of 2,839,400 tons (104.3 million bushels) for 2020/21 delivery were primarily to China (1,705,000 tons) and unknown destinations (872,500 tons).

Soybean meal came out at 182,400 tons, an increase of 75% from the previous week and 24% from the four-week average. Canada purchased 95,700 tons and Mexico bought 24,600 tons. For the marketing year to date, soybean meal sales are 11,957,500 tons, compared to 11,806,600 a year ago. Sales of 70,000 tons for 2020/21 delivery were mostly to Colombia (18,000 tons) and El Salvador (18,000 tons).

Soybean oil had a net reduction of 2,500 tons. Sales of 200 to 7,100 tons were more than offset by a cancellation on 12,000 tons by Guatemala. Cumulative soybean oil sales are 1,266,900 tons, compared to 877,000 last year. Sales of 48,700 tons for 2020/21 delivery were mainly to South Korea (28,000 tons) and Guatemala (18,000 tons).

New crop upland cotton sales were 6,900 bales. Pakistan picked up 10,100 bales and Indonesia purchased 7,500 bales, but China canceled on 21,500 bales. 2020/21 cotton exports are 6,567,100 tons, compared to 7,774,700 at the outset of 2019/20. The USDA says 2019/20 upland cotton sales were 17,174,500 bales, 8% above 2018/19.

Net beef sales totaled 11,600 tons, a decrease of 13% on the week and 46% from the four-week average. The reported buyers were Japan (2,900 tons), China (1,900 tons), Canada (1,400 tons), Hong Kong (1,300 tons), and South Korea (1,200 tons). Shipments of 16,800 tons were 4% less than the previous week, but 1% more than the four-week average, primarily to South Korea (5,500 tons), Japan (4,800 tons), Taiwan (1,500 tons), Mexico (1,100 tons), and Hong Kong (1,000 tons).

Net pork sales totaled 10,500 tons, a drop of 66% from the week before and a decline of 70% from the four-week average. The listed purchasers were Mexico (8,800 tons), Japan (2,700 tons), Canada (1,600 tons), Australia (1,100 tons), and Chile (1,000 tons), with a cancellation by China (8,800 tons). Shipments of 34,900 tons were up 2% from the prior week and 7% from the four-week average, mostly to Mexico (11,000 tons), China, (9,900 tons), Japan (4,000 tons), Canada (2,300 tons), and South Korea (1,300 tons). Sales of 100 tons for 2021 delivery were to Australia.

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