Big week for new crop soybean sales
The USDA says China didn’t buy any U.S. pork during the week ending August 12th but did lead the way for soybeans and wheat. New crop soybean sales topped 2 million tons, with about half of that to China as their domestic crush margins improve and Brazil’s prices move higher, making U.S. beans much more competitive. China was also the biggest buyer of wheat with about two thirds of the weekly total and purchased 1,800 tons of U.S. beef, continuing to move towards meeting purchase agreements under Phase One of the trade pact. Japan was the leading buyer of beef, while Mexico topped the list for corn and pork. The USDA’s next set of supply and demand estimates is out September 10th.
Physical shipments of wheat were more than what’s needed to meet USDA projections for the current marketing year. The 2021/22 marketing year started June 1st, 2021 for wheat and August 1st, 2021 for cotton and rice, while 2020/21 got underway September 1st, 2020 for beans, corn, and sorghum and October 1st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.
Wheat came out at 306,700 tons (11.3 million bushels), up 5% from the week ending August 5th, but down 23% from the four-week average. China purchased 197,400 tons and South Korea bought 76,600 tons, but unknown destinations canceled on 217,000 tons. Nearing the second quarter of the 2021/22 marketing year, wheat sales are 331.1 million bushels, compared to 404.7 million in 2020/21.
Corn was reported at 216,500 tons, 43% lower than the previous week, but sharply higher than the four-week average. Mexico picked up 190,100 tons and Canada purchased 62,300 tons. With just over two weeks remaining in the 2020/21 marketing year, corn sales are 2.768 billion bushels, compared to 1.741 billion late in 2019/20. Sales of 510,000 tons (20.1 million bushels) for 2021/22 delivery were mainly to Mexico (307,500 tons) and Colombia (88,800 tons).
Sorghum had a net reduction of 108,200 tons (-4.3 million bushels). Mexico bought 6,500 tons, but unknown destinations canceled on 110,000 tons and China canceled on 4,700 tons. Sorghum exports are 278.8 million bushels, compared to 182.2 million a year ago.
Rice sales were 43,300 tons. Mexico picked up 21,800 tons and Costa Rica purchased 18,400 tons, but Haiti canceled on 22,400 tons. Early in the marketing year, rice exports are 565,700 tons, compared to 377,000 this time last year. Net reductions of 2,100 tons for 2022/23 delivery followed a cancellation by Japan.
Soybeans were pegged at 67,700 tons (2.5 million bushels), 30% less than the week before, but quite a bit more than the four-week average. China bought 92,300 tons and Taiwan picked up 12,300 tons, while unknown destinations canceled on 76,800 tons. So far, this marketing year, soybean sales are 2.281 billion bushels, compared to 1.738 billion a year ago. Sales of 2,142,100 tons (78.7 million bushels) for 2021/22 delivery were primarily to China (1,030,000 tons) and unknown destinations (841,000 tons).
Soybean meal came out at 72,400 tons, a decline of 38% from the prior week and 29% from the four-week average. Japan purchased 37,000 tons and Mexico bought 12,900 tons. Closing in on the final month of the marketing year, soybean meal sales are 12,001,000 tons, compared to 11,992,000 last year. Sales of 104,600 tons for 2021/22 delivery were mostly to the Philippines (90,000 tons) and Canada (6,500 tons).
Soybean oil was reported at 500 tons, a jump of 54% on the week, but a drop of 67% from the four-week average. Canada picked up 300 tons and Honduras purchased 200 tons. Cumulative soybean oil sales are 683,500 tons, compared to 1,266,700 a year ago. Sales of 100 tons for 2021/22 delivery were to Honduras.
Upland cotton was pegged at 242,400 bales. China bought 161,900 bales and Turkey picked up 46,100 bales. 2021/22 upland cotton exports are 5,218,800 bales, compared to 6,695,100 towards the outset of 2020/21.
Net beef sales totaled 11,100 tons, a decrease of 18% from the previous week and 42% from the four-week average. The reported purchasers were Japan (2,800 tons), South Korea (2,800 tons), China (1,800 tons), Taiwan (900 tons), and Mexico (600 tons), with a cancellation by Colombia (100 tons). Shipments of 19,700 tons were 6% above the week before, but 1% below the four-week average, mainly to South Korea (5,600 tons), Japan (4,700 tons), China (4,200 tons), Mexico (1,200 tons), and Taiwan (1,100 tons).
Net pork sales totaled 20,000 tons, 37% larger than the prior week, but 31% smaller than the four-week average. The listed buyers were Mexico (6,900 tons), Japan (3,100 tons), Colombia (3,000 tons), Canada (2,300 tons), and South Korea (1,500 tons), with a cancellation by Australia (200 tons). Shipments of 28,700 tons were up 4% on the week, but down 2% from the four-week average, primarily to Mexico (13,500 tons), China (4,500 tons), Japan (4,300 tons), Canada (1,600 tons), and Colombia (1,400 tons).