News

New crop soybean exports over 120 million bushels

Export sales during the week ending July 23rd were strong for a few key commodities. The numbers for old crop soybeans were lackluster, but new crop topped 3.3 million tons because of strong demand from China and unknown destinations and new crop sorghum sales were also led by unknown destinations and China. The USDA says pork sales were nearly 40,000 tons, with China and Mexico combined purchasing more than 33,000 tons of the weekly total, while beef hit a marketing year high, mainly to South Korea and Japan. On the less positive side, old crop corn had a net reduction and new crop was at the low end of pre-report estimates. The USDA’s next set of supply and demand estimates is out August 12th.

Physical shipments of wheat were more than what’s needed to meet USDA projections for the current marketing year. The 2020/21 marketing year started June 1st for wheat, while 2019/20 runs through the end of July for cotton and rice, the end of August for corn, sorghum, and soybeans, and the end of September for soybean products.

Wheat came out at 676,600 tons (24.9 million bushels), up 10% from the week ending July 16th and 30% higher than the four-week average. The Philippines purchased 132,400 tons and Taiwan bought 102,800 tons. Still early in the 2020/21 marketing year, wheat sales are 353.4 million bushels, compared to 326.2 million in 2019/20.

Old crop corn had a net reduction of 29,300 tons (-1.2 million bushels). Sales of 4,000 to 41,800 tons were more than offset by cancellations of 14,300 to 53,700 tons. With just over a month remaining in 2019/20, corn sales are 1.720 billion bushels, compared to 1.964 billion late in 2018/19. Sales of 638,700 tons (25.1 million bushels) were mainly to unknown destinations (245,900 tons) and Mexico (112,000 tons).

Sorghum was reported at 4,300 tons (200,000 bushels), down 95% from both the previous week and the four-week average. China picked up 71,400 tons and Japan purchased 900 tons, but unknown destinations canceled on 68,000 tons. At this point in the marketing year, sorghum sales are 171.8 million bushels, compared to 65.1 million a year ago. Sales of 163,000 tons (6.4 million bushels) for 2020/21 delivery were to unknown destinations (98,000 tons) and China (65,000 tons).

Rice sales were 23,000 tons, 78% larger than the week before and 18% above the four-week average. Haiti bought 15,300 tons and Canada picked up 1,900 tons. Nearing the end of the current marketing year, rice sales are 3,387,300 tons, compared to 3,537,400 late last year. Sales of 6,000 tons for 2020/21 delivery were to Costa Rica.

Soybeans were pegged at 257,800 tons (9.5 million bushels), a decline of 29% from the prior week and 45% from the four-week average. Germany purchased 152,400 tons and Egypt bought 151,200 tons, but unknown destinations canceled on 323,600 tons. So far, this marketing year, soybean sales are 1.719 billion bushels, compared to 1.790 billion a year ago. Sales of 3,344,200 tons (122.9 million bushels) for 2020/21 delivery were mostly to China (1,989,000 tons) and unknown destinations (1,232,900 tons), with a cancellation by Switzerland (60,000 tons).

Soybean meal came out at 260,900 tons, a significant rise from both the previous week and the four-week average. The Philippines picked up 137,300 tons and Mexico purchased 33,800 tons. For the marketing year to date, soybean meal sales are 11,671,100 tons, compared to 11,584,300 last year. Sales of 32,900 tons for 2020/21 delivery were mainly to Canada (14,300 tons) and Guatemala (11,800 tons), with a cancellation by Morocco (5,000 tons).

Soybean oil was reported at 800 tons. Canada and Mexico each bought 300 tons, while the Dominican Republic picked up 200 tons. Cumulative soybean oil sales are 1,245,000 tons, compared to 843,900 a year ago. Sales of 10,000 tons for 2020/21 delivery were to South Korea.

Upland cotton was pegged at 118,700 bales, quite a bit more than both the week before and the four-week average. Vietnam purchased 76,500 bales and China bought 22,100 bales, with several cancellations ranging from 1,800 to 3,900 bales. 2019/20 upland cotton sales are 17,124,900 bales, compared to 15,543,300 in 2018/19. Sales of 9,500 bales for 2020/21 delivery were primarily to Vietnam (3,000 bales) and Pakistan (2,600 bales).

Net beef sales totaled 29,500 tons, a surge of 89% on the week and 81% from the four-week average. The reported buyers were South Korea (11,500 tons), Japan (10,600 tons), Taiwan (1,500 tons), China (1,400 tons), and Hong Kong (1,300 tons), with Chile and the Philippines each cancelling on 100 tons. Shipments of 18,300 tons were up 14% from the previous week and 19% from the four-week average, mostly to Japan (6,600 tons), South Korea (5,700 tons), Taiwan (1,400 tons), Canada (1,200 tons), and Hong Kong (1,000 tons). Sales of 1,200 tons for 2021 delivery were to Mexico (1,100 tons) and the Philippines (100 tons).

Net pork sales totaled 39,600 tons, an increase of 24% from the week before and 12% from the four-week average. The listed purchasers were China (17,800 tons), Mexico (15,400 tons), Canada (2,300 tons), Japan (900 tons), and the Philippines (800 tons), with a cancellation by Australia (400 tons). Shipments of 31,500 tons were a decrease of 12% from the prior week and 3% from the four-week average, mainly to China (10,200 tons), Mexico (9,200 tons), Japan (4,400 tons), Canada (2,300 tons), and South Korea (1,000 tons). Sales of 400 tons for 2021 delivery were to Australia.