News
Strong pace continues for new crop soybean exports
The USDA says the week ending August 13th was another strong week for new crop soybean export sales. The total of 94.5 million bushels was down from the previous week, but still represents a very strong start to next marketing year, driven by demand from China, which has stepped up purchases of U.S. soybeans over the past few weeks because of competitive prices and Beijing’s need to shore up domestic supplies, even as political tensions continue. Old crop soybeans were a marketing year low, following cancellations by unknown destinations and China. Meat exports were up solidly on the week, with Mexico and China the biggest buyers for pork and South Korea and Japan the top purchasers for beef. China was also the leading buyer of cotton. Wheat, old crop corn, and old crop sorghum sales were lower than average, while old crop soybean meal was a marketing year low and old crop bean oil had a net reduction. The USDA’s next set of supply and demand estimates is out September 11th.
The 2020/21 marketing year started June 1st for wheat and August 1st for cotton and rice, while 2019/20 runs through the end of August for corn, sorghum, and soybeans and the end of September for soybean products.
Wheat came out at 523,000 tons (19.2 million bushels), up 42% from the week ending August 6th, but down 8% from the four-week average. The Philippines purchases 182,900 tons and Brazil bought 90,000 tons. Closing in on the end of the first quarter of the 2020/21 marketing year, wheat sales are 408.4 million bushels, compared to 382.9 million in 2019/20.
Corn was reported at 61,600 tons (2.4 million bushels), 84% lower than the previous week and 63% below the four-week average. Japan picked up 70,200 tons and Colombia purchased 52,300 tons, but unknown destinations canceled on 87,600 tons. With just a couple of weeks left in the 2019/20 marketing year, corn sales are 1.741 billion bushels, compared to 1.973 billion late in 2018/19. Sales of 723,300 tons (28.5 million bushels) for 2020/21 delivery were mainly to unknown destinations (365,100 tons) and Mexico (94,800 tons).
Sorghum had a net reduction of 4,600 tons (-200,000 bushels). China bought 48,400 tons, but unknown destinations canceled on 53,000 tons. Nearing the end of the marketing year, sorghum sales are 182.2 million bushels, compared to 67.9 million this time last year. Sales of 122,000 tons (4.8 million bushels) for 2020/21 delivery were to unknown destinations (68,000 tons) and China (54,000 tons).
Rice sales were 25,200 tons. Haiti picked up 15,300 tons and Mexico purchased 5,000 tons. Early in the 2020/21 marketing year, rice exports are 377,000 tons, compared to 802,200 in 2019/20.
Old crop soybeans had a net reduction of 12,700 tons (-500,000 bushels). The Netherlands bought 137,000 tons and Indonesia picked up 88,800 tons, but unknown destinations canceled on 342,800 tons. So far, this marketing year, soybean sales are 1.745 billion bushels, compared to 1.786 billion a year ago. Sales of 2,573,200 tons (94.5 million bushels) for 2020/21 delivery were primarily to China (1,654,000 tons) and unknown destinations (701,000 tons).
Soybean meal was pegged at 34,500 tons, a decline of 81% from the week before and 77% from the four-week average. Canada purchased 19,400 tons and the Philippines bought 6,900 tons. With just over a month remaining in the marketing year, soybean meal sales are 11,992,000 tons, compared to 11,925,200 last year. Sales of 155,800 tons for 2020/21 delivery were mostly to Mexico (54,000 tons) and unknown destinations (33,000 tons).
Soybean oil had a net reduction of 200 tons. Sales of 100 to 600 tons were more than offset by a cancellation on 1,000 tons by unknown destinations. For the marketing year to date, soybean oil sales are 1,266,700 tons, compared to 879,200 a year ago.
Upland cotton sales were 128,000 bales. China picked up 56,800 bales and Vietnam purchased 24,800 bales. Just after the start of the current marketing year, cotton sales are 6,695,100 bales, compared to 7,938,700 early last marketing year. Sales of 4,900 bales for 2021/22 delivery were to Indonesia (9,300 bales) with a cancellation by Malaysia (4,400 bales).
Net beef sales totaled 20,000 tons, an increase of 69% on the week and 13% from the four-week average. The listed buyers were South Korea (8,700 tons), Japan (4,800 tons), Taiwan (1,800 tons), Mexico (1,600 tons), and Hong Kong (1,100 tons), with cancellations by China (500 tons) and Colombia (100 tons). Shipments of 18,300 tons were up 9% from the previous week and 8% from the four-week average, mainly to Japan (5,800 tons), South Korea (5,400 tons), Taiwan (1,800 tons), Canada (1,200 tons), and Mexico (1,100 tons). Sales of 500 tons for 2021 delivery were primarily to Canada (400 tons).
Net pork sales totaled 20,600 tons, 97% more than the prior week, but 27% less than the four-week average. The reported purchasers were Mexico (7,800 tons), China (6,500 tons), Japan (2,400 tons), Canada (1,900 tons), and South Korea (900 tons), with cancellations by Australia (800 tons) and New Zealand (300 tons). Shipments of 31,800 tons were a decrease of 9% from the week before and 7% from the four-week average, mostly to Mexico (9,900 tons), China (9,500 tons), Japan (4,200 tons), Canada (2,300 tons), and South Korea (1,400 tons). Sales of 100 tons for 2021 delivery were to Australia.
