News

Strong week for sorghum, soybean exports

China was the leading buyer of 2019 U.S. pork during the week ending October 31st, but, overall, sales were disappointing. Beijing bought 2,800 tons of U.S. pork for delivery this year, while net sales dropped 45% on the week and more than 80% from the four-week average. China also canceled on 2,000 tons of U.S. pork for 2020 delivery. Sorghum sales were a new marketing year high and soybean exports were up sharply from the previous week, with China the leading buyer for both commodities. Unknown destinations were the top purchaser in corn, the Philippines led the way for wheat, and Japan was the big weekly buyer for beef. New USDA supply, demand, and production estimates are out Friday at Noon Eastern/11 Central.

Soybean exports topped pre-report expectations, while corn, soybean products, and wheat fell within analysts’ estimates. Physical shipments of soybeans were more than what’s needed weekly to meet USDA projections for the marketing year. The 2019/20 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 360,600 tons (13.2 million bushels), down 27% from the week ending October 24th and 14% lower than the four-week average. The Philippines purchased 64,000 tons and Thailand bought 45,000 tons. At this point in the 2019/20 marketing year, wheat sales are 548.9 million bushels, compared to 505.1 million in 2018/19.

Corn was reported at 487,900 tons (19.2 million bushels), 11% less than the previous week, but 15% more than the four-week average. Unknown destinations picked up 227,700 tons and Mexico purchased 186,900 tons. About two months into the marketing year, corn sales are 468.2 million bushels, compared to 887.1 million this time last year.

Sorghum was a new marketing year high at 216,600 tons (8.5 million bushels), a big jump from the week before and the four-week average. China bought 123,000 tons and unknown destinations picked up 66,000 tons. Sales this marketing year are 21.2 million bushels, compared to 8.7 million a year ago.

Rice exports were 53,300 tons, a decline of 37% from the prior week and 34% from the four-week average. Japan purchased 30,300 tons and Mexico bought 13,700 tons. Roughly a quarter into the marketing year, rice sales are 1,608,600 tons, compared to 1,163,500 last year.

Soybeans were pegged at 1,807,400 tons (66.4 million bushels), up 92% from the previous week and 41% higher than the four-week average. China picked up 956,300 tons and the Netherlands purchased 284,100 tons, while unknown destinations canceled on 157,200 tons. So far, this marketing year, soybean sales are 774.5 million bushels, compared to 791.7 million a year ago.

Soybean meal came out at 262,400 tons. The Philippines bought 143,200 tons and Colombia picked up 53,300 tons. Nearly a month into the marketing year, soybean meal sales are 4,168,000 tons, compared to 4,827,600 last year.

Soybean oil was reported at 3,800 tons. Colombia purchased 2,000 tons and Mexico bought 900 tons. Cumulative soybean oil sales are 236,900 tons, compared to 247,200 a year ago.

Upland cotton sales were 164,500 bales, 52% above the week before and 2% above the four-week average. Pakistan picked up 95,100 bales and Vietnam purchased 45,100 bales, but Indonesia canceled on 65,900 bales. 2019/20 upland cotton exports are 9,548,700 bales, compared to 9,238,500 in 2018/19. Sales of 118,600 bales for 2020/21 delivery were mainly to Indonesia (70,500 bales) and Vietnam (44,000 bales).

Net beef sales totaled 10,100 tons, down 36% on the week, but up sharply from the four-week average. The listed buyers were Japan (2,900 tons), Taiwan (1,900 tons), Mexico (1,500 tons), South Korea (1,400 tons), and Canada (900 tons). Sales of 2,200 tons for 2020 delivery were to South Korea (700 tons), Canada (500 tons), Mexico (500 tons), Japan (300 tons), and Taiwan (200 tons).

Net pork sales totaled 16,600 tons, a decrease of 45% from the prior week and 82% from the four-week average. The reported purchasers were China (2,800 tons), Canada (2,700 tons), South Korea (2,700 tons), Japan (2,400 tons), and Mexico (2,400 tons). Net sales of 8,300 tons for 2020 delivery were primarily to South Korea (7,600 tons) and Australia (1,900 tons), with a cancellation by China (2,000 tons).