Strong soybean export pace continues
Soybean export demand continues to be strong. The USDA says soybean sales during the week ending October 8th were more than 2.6 million tons, up slightly on the week and larger than average, mainly to China and Mexico, but it was a relatively quiet week for the other major commodities, with wheat holding steady and sales of corn, beef, cotton, and rice all posting week to week declines. The USDA’s next set of supply and demand estimates is out November 10th.
Physical shipments of soybeans and wheat were more than what’s needed to meet projections for the current marketing year. The 2020/21 marketing year started June 1st for wheat, August 1st for cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.
Wheat came out at 528,500 tons (19.4 million bushels), unchanged from the week ending October 1st and up 23% from the four-week average. Mexico purchased 229,000 tons and Japan bought 62,200 tons. At this point in the 2020/21 marketing year, wheat sales are 553 million bushels, compared to 507.9 million in 2019/20. Sales of 71,200 tons (2.6 million bushels) for 2021/22 delivery were to Brazil (60,000 tons) and Mexico (11,200 tons).
Corn was reported at 655,200 tons (25.8 million bushels), down 47% from the previous week and 63% lower than the four-week average. Mexico picked up 203,800 tons and Colombia purchased 184,200 tons, but unknown destinations canceled on 152,100 tons. Just over two months into the marketing year, corn sales are 1.043 billion bushels, compared to 408 million this time last year.
There were no reported sorghum sales, with the marketing year to date total at 115.6 million bushels, compared to 10.5 million a year ago.
Rice sales were 10,000 tons, a drop of 96% from the week before and 92% from the four-week average. Canada bought 3,800 tons and Jordan picked up 2,100 tons. Exports this year are 1,019,500 tons, compared to 1,386,500 last year.
Soybeans were pegged at 2,631,300 tons (96.7 million bushels), 2% higher than the prior week and 18% above the four-week average. China purchased 1,592,500 tons and Mexico bought 210,400 tons. So far, this marketing year, soybean sales are 1.589 billion bushels, compared to 656 million a year ago.
Soybean meal came out at 152,200 tons. Ecuador picked up 37,200 tons and Canada purchased 32,300 tons, but unknown destinations canceled on 34,600 tons. Early in the marketing year, soybean meal sales are 3,619,200 tons, compared to 3,616,100 last year.
Soybean oil was reported at 1,400 tons. Canada bought 1,800 tons and Mexico picked up 200 tons, with cancellations by the Dominican Republic (500 tons), Guatemala (100 tons), and South Korea (100 tons). Cumulative soybean oil sales are 178,200 tons, compared to 199,900 a year ago. Sales of 200 tons for 2021/22 delivery were to Canada.
Upland cotton was pegged at 98,900 bales, 45% below the previous week and 61% under the four-week average. Pakistan purchased 36,500 bales and China bought 20,000 bales. 2020/21 upland cotton sales are 8,233,200 bales, compared to 9,135,600 in 2019/20. Sales of 13,200 bales for 2021/22 delivery were to China.
Net beef sales totaled 13,400 tons, a decrease of 35% from the week before and 31% from the four-week average. The listed purchasers were Japan (3,900 tons), Mexico (3,100 tons), South Korea (2,200 tons), Taiwan (1,000 tons), and Canada (600 tons). Shipments of 16,200 tons were a decline of 5% on the week and 1% from the four-week average, mainly to Japan (4,200 tons), South Korea (3,800 tons), China (1,500 tons), Hong Kong (1,500 tons), and Mexico (1,500 tons). Sales of 400 tons for 2021 delivery were to Japan (200 tons), Chile (100 tons), and Taiwan (100 tons).
Net pork sales totaled 26,800 tons, down 56% from the previous week and 43% lower than the four-week average. The reported buyers were Mexico (11,900 tons), China (5,200 tons), Japan (4,700 tons), Canada (1,100 tons), and Colombia (800 tons). Shipments of 36,000 tons were 2% less than the week prior week, but 8% more than the four-week average, primarily to Mexico (11,700 tons), China (10,700 tons), Japan (4,600 tons), Canada (2,200 tons), and South Korea (1,800 tons). Sales of 1,600 tons for 2021 delivery were to Mexico (700 tons), Chile (600 tons), and Australia (300 tons).