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USDA: generally slow week for export sales

The USDA says China and Mexico both bought U.S. pork during the week ending May 30th, along with other agricultural goods. Beijing purchased more than 17,000 tons of U.S. pork, less than half of the previous week’s buy as tariffs remain in place, but with the spread of African Swine Fever continuing to slash domestic production and live inventory. China also bought more than 70,000 tons of U.S. soybeans, while cancelling on 5,000 tons of U.S. sorghum.

Mexico was the second biggest weekly buyer of pork and also purchased U.S. beef, corn, soybeans, and soybean products, but that was before the threat of new tariffs on imports from one of the biggest U.S. trading partners.

The USDA’s next set of supply and demand estimates is out Tuesday the 11th.

Overall, combined old and new crop corn export sales were below most analysts’ expectations, while soybean and soybean product and wheat sales were within estimates. The 2019/20 marketing year for wheat started June 1st, while 2018/19 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.

Old crop wheat had a net reduction of 26,000 tons (-1.0 million bushels). The Congo purchased 15,500 tons and Liberia bought 8,800 tons, but unknown destinations canceled on 73,000 tons, with a few other, smaller cancellations. With one reporting day left in the 2018/19 marketing year for wheat, sales are 949.5 million bushels, compared to 871.7 million late in 2017/18. Sales of 501,900 tons (18.4 million bushels) for 2019/20 delivery were mainly to Taiwan (111,100 tons) and Panama (89,500 tons).

Old crop corn had a net reduction of 8,800 tons (-300,000 bushels). New Zealand picked up 33,200 tons and Japan purchased 24,200 tons, while Nicaragua, Costa Rica, unknown destinations, and the Dominican Republic each canceled on more than 22,000 tons. For the marketing year to date, corn sales are 1.899 billion bushels, compared to 2.177 billion this time last year. Sales of 23,500 tons (900,000 bushels) for 2019/20 delivery were primarily to Mexico (10,300 tons) and Canada (10,200 tons).

Sorghum came out at 600 tons, with a sale to unknown destinations (5,600 tons) mostly offset by a cancellation from China (5,000 tons). At this point in the marketing year, sorghum sales are 61.4 million bushels, compared to 201 million a year ago.

Soybeans were reported at 510,000 tons (18.7 million bushels), up 28% from the week ending May 23rd and 86% higher than the four-week average. Unknown destinations bought 214,000 tons and China picked up 72,300 tons. So far, this marketing year, soybean sales are 1.715 billion bushels, compared to 2.044 billion last year. Sales of 73,700 tons (2.7 million bushels) were mostly to Bangladesh (55,000 tons) and unknown destinations (18,000 tons).

Soybean meal was pegged at 110,800 tons, down 40% from the previous week and 38% lower than the four-week average. The Philippines purchased 42,900 tons and Ecuador bought 33,000 tons, but unknown destinations canceled on 29,500 tons. Cumulative soybean meal sales are 11,005,800 tons, compared to 11,039,100 a year ago. Sales of 2,100 tons for 2019/20 delivery were to the Dominican Republic (1,500 tons) and Canada (600 tons).

Soybean oil came out at 15,400 tons, 37% less than the week before and 36% below the four-week average. Guatemala picked up 5,000 tons and Mexico purchased 4,100 tons. 2018/19 soybean oil sales are 756,500 tons, compared to 885,000 in 2017/18.

Net beef sales totaled 16,700 tons, a decline of 23% from both the prior week and the four-week average. The reported buyers were South Korea (6,900 tons), Japan (3,300 tons), Taiwan (1,700 tons), Hong Kong (1,500 tons), and Mexico (1,500 tons).

Net pork sales totaled 33,800 tons, a decrease of 38% on the week, but an increase of 1% from the four-week average. The listed purchasers were China (17,400 tons), Mexico (6,200 tons), South Korea (3,400 tons), Japan (2,200 tons), and Chile (1,100 tons).