News
China big weekly buyer of several key U.S. ag goods
China continues to make headway towards meeting purchase obligations in the Phase One trade agreement. The USDA says China was the biggest buyer of U.S. pork, wheat, cotton, and old and new crop corn, sorghum, and soybeans during the week ending August 27th, also purchasing U.S. beef. The USDA’s next set of supply and demand estimates is out September 11th.
Physical shipments of corn, sorghum, soybeans, and wheat were less than what’s needed to meet USDA projections for the current respective marketing years. The 2020/21 marketing year started June 1st for wheat, August 1st for cotton and rice, and September 1st for beans, corn, and sorghum, while 2019/20 runs through the end of September for soybean products.
Wheat came out at 585,400 tons (21.5 million bushels), down 23% from the week ending August 20th, but up 4% from the four-week average. China purchased 250,800 tons and the Philippines bought 116,400 tons. Just outside of the end of the first quarter of the 2020/21 marketing year, wheat sales are 458 million bushels, compared to 418.7 million in 2019/20.
Corn was reported at 95,800 tons (3.8 million bushels), 65% under than the previous week and 53% below the four-week average. China picked up 72,100 tons and Mexico purchased 44,100 tons, while Taiwan canceled on 66,100 tons. With just a few reporting days remaining in the 2019/20 marketing year, corn sales are 1.755 billion bushels, compared to 1.966 billion late in 2018/19. sales of 2,389,100 tons (94.1 million bushels) for 2020/21 delivery were mainly to China (1,155,000 tons) and unknown destinations (569,000 tons).
Sorghum sales were 11,900 tons (500,000 bushels), all to China. For the marketing year to date, sorghum exports are 182.6 million bushels, compared to 68 million this time last year. Sales of 126,500 tons (5.0 million bushels) for 2020/21 delivery were to China.
Rice sales were 13,400 tons. Nicaragua bought 3,000 tons and Saudi Arabia picked up 2,400 tons. Less than a month into the marketing year, rice exports are 465,800 tons, compared to 1,024,800 a year ago.
Soybeans were pegged at 88,100 tons (3.2 million bushels), 75% higher than the week before, but 57% lower than the four-week average. China purchased 83,300 tons and the Netherlands bought 69,600 tons, but unknown destinations canceled on 212,000 tons. So far, this marketing year, soybean sales are 1.746 billion bushels, compared to 1.793 billion last year. Sales of 1,762,800 tons (64.8 million bushels) for 2020/21 delivery were primarily to China (1,010,000 tons) and unknown destinations (526,000 tons).
Soybean meal came out at 113,700 tons, a significant rise from the previous week and 22% above the four-week average. Canada picked up 71,700 tons and Mexico purchased 15,700 tons, while El Salvador canceled on 14,000 tons. With just over a month left in the marketing year, soybean meal sales are 12,158,900 tons, compared to 12,046,400 a year ago. Sales of 228,800 tons for 2020/21 delivery were mostly to Guatemala (56,500 tons) and unknown destinations (48,000 tons).
Soybean oil was reported at 4,900 tons. Canada bought 4,600 tons and Mexico picked up 400 tons, while Venezuela canceled on 100 tons. Cumulative soybean oil sales are 1,272,900 tons, compared to 891,600 last year. Sales of 3,000 tons for 2020/21 delivery were to South Korea.
Upland cotton was pegged at 131,500 bales. China purchased 61,400 bales and Vietnam bought 30,200 bales. 2020/21 upland cotton sales are 6,983,200 tons, compared to 8,247,600 in 2019/20.
Net beef sales totaled 11,400 tons, a decrease of 4% on the week and 19% from the four-week average. The listed purchasers were Japan (2,600 tons), South Korea (2,000 tons), China (1,800 tons), Taiwan (1,500 tons), and Indonesia (1,000 tons. Shipments of 17,400 tons were down 4% from the previous week and 2% from the four-week average, mostly to South Korea (5,600 tons), Japan (5,100 tons), Taiwan (1,600 tons), China (1,100 tons), and Hong Kong (1,000 tons). Sales of 400 tons for 2021 delivery were mainly to Canada.
Net pork sales totaled 53,600 tons, a jump of 36% from the week before and a significant increase from the four-week average. The reported buyers were China (28,700 tons), Mexico (14,700 tons), Japan (2,900 tons), Canada (2,000 tons), and Chile (1,400 tons), with a cancellation by Macedonia (200 tons). Shipments of 32,500 tons were unchanged from the prior week and 3% less than the four-week average, primarily to China (9,700 tons), Mexico (9,400 tons), Japan (4,200 tons), Canada (3,000 tons), and South Korea (1,700 tons). Sales of 300 tons for 2021 delivery were to Australia.
