Export sales mostly lower on the week

News

Export sales mostly lower on the week

The USDA says export sales for the week ending May 27th were mostly down from the week before, due to a combination of factors. Some U.S. commodities are relatively high priced due to tight supplies, the dollar was up late in the week, making U.S. goods more expensive on the export market, and there are bearish seasonal factors, such as Brazil holding most of the market share for soybeans. New crop corn sales fell sharply from the previous week because of a lack of new demand from China but were still nearly a half a million tons. The USDA’s next set of supply and demand estimates is out Thursday, June 10th at Noon Eastern/11 Central.

Physical shipments of corn and sorghum were more than what’s needed weekly to meet USDA projections for the current marketing year. The 2020/21 marketing year started June 1st, 2020 for wheat, August 1st, 2020 for cotton and rice, September 1st, 2020 for corn, sorghum, and soybeans, and October 1st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat had a net reduction of 33,300 tons (-1.2 million bushels). Brazil purchased 16,500 tons and Jamaica bought 8,900 tons, but unknown destinations canceled on 44,800 tons. With just a few reporting days remaining in the 2020/21 marketing year, wheat sales are 942.3 million bushels, compared to 990.1 million late in 2019/20. Sales of 398,300 tons (14.6 million bushels) for 2021/22 delivery were mainly to the Philippines (105,500 tons) and Japan (65,700 tons).

Corn was reported at 531,100 tons (20.9 million bushels), down 5% from the week ending May 20th, but up solidly from the four-week average. Japan picked up 179,500 tons and China purchased 158,500 tons, but unknown destinations canceled on 227,000 tons. Entering the final quarter of the marketing year, corn sales are 2.721 billion bushels, compared to 1.593 billion this time last year. Sales of 439,500 tons (17.3 million bushels) for 2021/22 delivery were primarily to unknown destinations (202,400 tons) and Japan (150,800 tons).

Sorghum had a net reduction of 2,700 tons (-100,000 bushels). China bought 65,300 tons, while unknown destinations canceled on 68,000 tons. Sorghum exports are 284.8 million bushels, compared to 155.4 million a year ago. Sales of 184,900 tons (7.3 million bushels) for 2021/22 delivery were to China (129,900 tons) and unknown destinations (55,000 tons).

Rice sales were 24,500 tons, 31% lower than the previous week and 50% below the four-week average. The United Kingdom picked up 10,000 tons and Mexico purchased 9,600 tons, while Honduras canceled 2,500 tons. Rice exports are 3,164,500 tons, compared to 3,302,900 last year.

Soybeans were pegged at 17,800 tons (700,000 bushels), a decline of 68% from the week before and 82% from the four-week average. Japan bought 41,000 tons and Colombia picked up 15,500 tons, but unknown destinations canceled on 72,000 tons. So far, this marketing year, soybean sales are 2.261 billion bushels, compared to 1.559 billion a year ago. Sales of 180,300 tons (6.6 million bushels) for 2021/22 delivery were mostly to unknown destinations (132,000 tons) and Mexico (34,000 tons).

Soybean meal came out at 217,700 tons, 10% higher than the prior week and 31% above the four-week average. The Philippines purchased 59,100 tons and Ecuador bought 48,000 tons. At this point in the marketing year, soybean meal sales are 10,304,600 tons, compared to 10,518,100 last year. Sales of 500 tons for 2021/22 delivery were to Japan.

Soybean oil was reported at 1,000 tons, a decrease of 41% on the week and unchanged from the four-week average. Jamaica picked up 4,000 tons and Mexico purchased 600 tons, but Colombia canceled on 3,000 tons. Cumulative soybean oil sales are 667,800 tons, compared to 1,150,100 a year ago.

Upland cotton was pegged at 180,800 bales, an increase of 6% from the previous week and 82% from the four-week average. Pakistan bought 74,900 bales and China picked up 43,200 bales. 2020/21 upland cotton exports are 15,727,400 tons, compared to 16,325,700 in 2019/20. Sales of 98,800 bales for 2021/22 delivery were mainly to South Korea (36,100 bales) and Pakistan (24,200 bales).

Net beef sales totaled 12,600 tons, 55% less than the week before and 38% under the four-week average. The reported purchasers were Japan (4,000 tons), South Korea (2,500 tons), Taiwan (1,900 tons), Mexico (1,400 tons), and Chile (900 tons). Shipments of 12,400 tons were a drop of 36% from the prior week and 34% from the four-week average, primarily to Japan (4,800 tons), South Korea (3,500 tons), Taiwan (900 tons), China (800 tons), and Mexico (700 tons).

Net pork sales totaled 24,300 tons, down 47% on the week and 24% from the four-week average. The listed buyers were Mexico (13,900 tons), China (4,800 tons), Japan (1,800 tons), Colombia (1,600 tons), and Canada (1,200 tons), with cancellations by South Korea (1,000 tons), Nicaragua (100 tons), and Peru (100 tons). Shipments of 36,400 tons were a decrease of 24% from the week before and 10% from the four-week average, mostly to Mexico (13,500 tons), China (9,700 tons), Japan (3,400 tons), South Korea (2,100 tons), and Canada (1,800 tons).

.