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Weekly soybean, wheat exports top expectations

The USDA reports old crop soybean and wheat export sales for the week ending May 18th were larger than most analysts were expecting, while corn was below pre-report estimates. Physical shipments of soybeans were above what’s needed to meet USDA projections for the 2016/17 marketing year, but corn and wheat fell short of their respective marks. The 2016/17 marketing year runs through May for wheat, the end of August for corn, soybeans, and sorghum, and the end of September for soybean products.

Wheat came out at 201,900 tons (7.4 million bushels), down 19% from the week ending May 11th, but up 49% from the four week average. Mexico purchased 119,500 tons and Venezuela bought 60,000 tons, but unknown destinations canceled on 174,000 tons. Nearing the end of the 2016/17 marketing year, wheat sales are 1.044 billion bushels, compared to 758.4 million late in 2015/16. Sales of 342,900 tons (12.6 million bushels) for 2017/18 delivery were mainly to Mexico (231,700 tons) and Guatemala (37,700 tons).

Corn was reported at 457,200 tons (18.0 million bushels), 35% lower than the previous week and 33% less than the four week average. Japan picked up 227,400 tons and Mexico purchased 68,600 tons, while unknown destinations canceled on 120,000 tons. For the marketing year to date, corn sales are 2.097 billion bushels, compared to 1.646 billion this time last year. Sales of 500 tons for 2017/18 delivery were to unknown destinations.

Sorghum had a net reduction of 3,200 tons (-100,000 bushels) with sales to China (49,200 tons) and Mexico (600 tons) offset by a cancellation from unknown destinations (53,000 tons). Sorghum sales are 169.6 million bushels, compared to 280.2 million a year ago.

Soybeans were pegged at 472,700 tons (17.4 million bushels), 33% higher than the week before and 9% more than the four week average. Unknown destinations bought 148,500 tons and China picked up 130,000 tons. So far this marketing year, soybean sales are 2.125 billion bushels, compared to 1.741 billion last year. Sales of 6,000 tons (200,000 bushels) for 2017/18 delivery were to Taiwan (4,000 tons) and Indonesia (2,000 tons).

Soybean meal came out at 125,000 tons, 10% above the prior week and up 7% from the four week average. The Philippines purchased 30,300 tons and Mexico bought 22,400 tons. Cumulative soybean meal sales are 9,458,100 tons, compared to 9,340,800 a year ago. Sales of 34,900 tons for 2017/18 delivery were mostly to Honduras (19,200 tons) and Guatemala (15,300 tons).

Soybean oil was reported at 10,000 tons, 33% below the previous week and down 24% from the four week average. Mexico picked up 3,300 tons and Colombia purchased 3,000 tons. 2016/17 soybean oil sales are 886,500 tons, compared to 888,700 in 2015/16.

Net beef sales totaled 7,100 tons, 6% lower than the week before and a drop of 49% from the four week average. The listed buyers were Mexico (1,700 tons), Canada (1,600 tons), Japan (1,400 tons), South Korea (700 tons), and Taiwan (700 tons), with a cancellation by Indonesia (100 tons).

Net pork sales totaled 17,600 tons, 13% higher than the previous week and 1% more than the four week average. The reported purchasers were Mexico (7,100 tons), Japan (4,200 tons), the Dominican Republic (1,400 tons), Australia (1,200 tons), and Canada (1,100 tons).