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Mexico takes top slot for U.S. pork purchases
Strong demand from Mexico is fueling U.S. pork export sales in 2022. The USDA says pork sales during the week ending January 27th were more than 30,000 tons, down from last week, but Mexico purchased nearly 21,000 tons of that total and has taken the top slot in three out of this year’s four reports. Beef sales were up solidly on the week, mainly to Japan. Rice and soybean meal notched new marketing year highs and soybeans were above a week ago, while corn, wheat, and cotton all pulled back from last week’s levels. The USDA’s next set of supply and demand estimates is out Wednesday, February 9th at Noon Eastern/11 Central.
Physical shipments of soybeans were more than what’s needed to meet USDA projections for the current marketing year. The 2021/22 marketing year got underway June 1st, 2021 for wheat, August 1st, 2021 for cotton and rice, September 1st, 2021 for beans, corn, and sorghum, and October 1st, 2021 for soybean products. The marketing year for beef and pork is the calendar year.
Wheat came out at 57,500 tons (2.1 million bushels), down 92% from the week ending January 20th and 83% from the four-week average. Colombia purchased 52,800 tons and Nigeria bought 52,000 tons, but those were nearly offset by cancellations ranging from 21,000 to 75,000 tons. At this point in the 2021/22 marketing year, wheat sales are 634.3 million bushels, compared to 823.6 million in 2020/21. Sales of 103,500 tons (3.8 million bushels) for 2022/23 delivery were mainly to the Philippines (50,000 tons) and Mexico (38,500 tons).
Corn was reported at 1,175,200 tons (46.3 million bushels), 16% lower than the previous week, but 47% higher than the four-week average. Japan picked up 475,300 tons and Mexico purchased 210,100 tons. Early in the second quarter of the marketing year, corn sales are 1.776 billion bushels, compared to 2.209 billion a year ago.
Sorghum sales were 81,100 tons (3.2 million bushels). China bought 141,100 tons, while unknown destinations canceled on 60,000 tons. Sorghum exports are 244.7 million bushels, compared to 229.2 million this time last year.
Rice sales were 157,200 tons, solid improvements from both the week before and the four-week average. Japan picked up 49,000 tons and Mexico purchased 45,000 tons. Rice exports are 1,915,400 tons, compared to 2,213,100 a year ago.
Soybeans were pegged at 1,095,500 tons (40.3 million bushels), a gain of 7% from the prior week and 56% from the four-week average. Mexico bought 356,600 tons and the Netherlands purchased 132,000 tons. So far, this marketing year, soybean sales are 1.662 billion bushels, compared to 2.15 billion last year. Sales of 881,800 tons (32.4 million bushels) for 2022/23 delivery were primarily to China (660,000 tons) and unknown destinations (132,000 tons).
Soybean meal came out at 605,500 tons, an increase of 83% on the week and significantly larger than the four-week average. Colombia picked up 174,400 tons and the Philippines purchased 138,700 tons. For the marketing year to date, soybean meal sales are 7,481,100 tons, compared to 7,199,300 a year ago. A net reduction of 1,300 tons for the 2022/23 marketing year followed cancellations by Canada (700 tons) and Japan (600 tons).
Soybean oil was reported at 4,100 tons, a drop of 66% from the previous week and 61% from the four-week average. Canada bought 3,700 tons and the Dominican Republic picked up 400 tons, while Colombia canceled on 100 tons. Cumulative soybean oil sales are 484,800 tons, compared to 584,100 last year.
Upland cotton was pegged at 332,100 bales, 15% less than the week before, but 10% more than the four-week average. China purchased 90,200 bales and Vietnam bought 58,700 bales. 2021/22 upland cotton exports are 11,990,700 bales, compared to 12,766,000 in 2020/21. Sales of 315,100 bales for 2022/23 delivery were mostly to Bangladesh (105,600 bales) and China (61,600 bales).
Net beef sales totaled 20,100 tons. The reported purchasers were Japan (11,800 tons), South Korea (3,500 tons), Taiwan (1,600 tons), China (900 tons), and Mexico (800 tons), with cancellations by the Bahamas (100 tons) and Italy (100 tons). Shipments of 16,900 tons were mainly to South Korea (5,900 tons), Japan (4,700 tons), China (1,900 tons), Taiwan (1,200 tons), and Mexico (1,100 tons).
Net pork sales totaled 30,400 tons. The listed buyers were Mexico (20,700 tons), Japan (6,000 tons), Canada (1,500 tons), Colombia (900 tons), and Honduras (400 tons), with a cancellation by China (500 tons). Shipments of 32,400 tons were primarily to Mexico (16,000 tons), Japan (6,300 tons), China (3,100 tons), South Korea (2,600 tons), and Canada (1,800 tons).
