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Another big week new crop corn, soybean export sales

The USDA reports the week ending September 3rd was another strong week for new crop corn and soybean export sales. New crop soybean sales were more than 3 million tons and corn topped 1.8 million tons, with both continuing to show heavy demand from China as they seek to meet Phase One agreement purchase obligations and bolster feed supplies as their livestock industry re-expands. Beef export sales were up on the week, but pork and wheat declined. The USDA’s next set of export sales numbers are out on the 17th.

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

Wheat came out at 484,400 tons (17.8 million bushels), down 17% from the week ending August 27th and 14% lower than the four-week average. The Philippines purchased 123,100 tons and Japan bought 116,500 tons. Just over a quarter into the 2020/21 marketing year, wheat sales are 475.8 million bushels, compared to 441.2 million in 2019/20.

2020/21 corn sales were 1,823,300 tons (71.8 million bushels). China picked up 1,194,500 tons and Japan purchased 255,900 tons. For the marketing year to date, corn sales are 742 million bushels, compared to 283.1 million a year ago. 1,250,400 tons were carried over from the 2019/20 marketing year. Accumulated exports for the 2019/20 marketing year were 43,273,800 tons, down 14% from 2018/19.

2020/21 sorghum sales were 56,000 tons (2.2 million bushels). China bought 86,000 tons, but unknown destinations canceled on 30,000 tons. Very early in the marketing year, sorghum sales are 96.4 million bushels, compared to 2.7 million this time last year. 107,900 tons were carried over from the 2019/20 marketing year. Accumulated exports for the 2019/20 marketing year were 4,529,300 tons, up 63% from 2018/19.

Rice was reported at 28,900 tons. Mexico picked up 11,400 tons and Saudi Arabia purchased 5,800 tons. At this point in the marketing year, rice sales are 12,185,200 tons, compared to 12,084,300 a year ago.

2020/21 soybean sales were 3,161,800 tons (116.2 million bushels). China bought 1,592,900 tons and unknown destinations picked up 926,000 tons. So far, this marketing year, soybean sales are 1.098 billion bushels, compared to 347.3 million last year. 2,538,200 tons were carried over from the 2019/20 marketing year. Accumulated exports for the 2019/20 marketing year were 44,934,500 tons, 4% less than 2018/19.

Soybean meal hit a marketing year low at 26,600 tons, a decline of 77% from the previous week and 72% under the four-week average. Indonesia purchased 24,100 tons and Mexico bought 15,100 tons, but Canada canceled on 41,600 tons. Nearing the end of the marketing year, soybean meal sales are 12,185,500 tons, compared to 12,084,300 a year ago. Sales of 333,000 tons for 2020/21 delivery were mainly to the Philippines (175,000 tons) and Colombia (81,000 tons).

Soybean oil was pegged at 4,100 tons. The Dominican Republic picked up 7,300 tons and Canada purchased 1,700 tons, while Colombia canceled on 5,000 tons. Cumulative soybean oil sales are 1,276,900 tons, compared to 899,800 last year. Net reductions of 3,000 tons for 2020/21 delivery followed a cancellation by Guatemala.

Upland cotton sales were 126,700 bales. China bought 79,100 bales and Vietnam picked up 20,300 bales. 2020/21 upland cotton exports are 7,110,000 tons, compared to 8,322,200 in 2019/20. Sales of 70,400 bales for 2020/21 delivery were to Indonesia.

Net beef sales totaled 15,500 tons, an increase of 37% on the week and 14% from the four-week average. The reported purchasers were South Korea (5,600 tons), Japan (4,300 tons), Mexico (1,300 tons), China (1,200 tons), and Hong Kong (700 tons). Shipments of 16,100 tons were 8% lower than the previous week and down 9% from the four-week average, primarily to South Korea (4,900 tons), Japan (4,100 tons), Taiwan (1,500 tons), China (1,300 tons), and Hong Kong (1,300 tons). Sales of 100 tons for 2021 delivery were to Japan.

Net pork sales totaled 30,200 tons, a decrease of 44% from the prior week and 3% from the four-week average. The listed buyers were Mexico (8,900 tons), China (8,300 tons), Japan (5,600 tons), Canada (2,000 tons), and Chile (2,000 tons). Shipments of 33,600 tons were 3% higher than the week before and up 2% from the four-week average, mostly to Mexico (11,100 tons), China (8,500 tons), Japan (4,700 tons), Canada (2,300 tons), and South Korea (2,100 tons). Sales of 100 tons for 2021 delivery were to Australia.