Beef, pork export sales up on week
There are few bright spots in latest USDA weekly export sales numbers, which cover the week ending May 11th. Beef exports were up modestly on the week and larger than average, with Japan, South Korea, and China leading the way, and pork was also above a week ago, with nearly half of that to Mexico. Soybean oil was also higher than the prior week, but lower than average. Old crop corn, wheat, sorghum, and rice export sales were all marketing year lows, with old crop soybeans, soybean meal, and cotton also down on the week. Export demand is driven by several factors including seasonal supply and demand changes, currency movement, and geopolitics. The USDA’s next round of supply and demand estimates is out June 9th.
Physical shipments of corn were slightly more than what’s needed to meet USDA projections for the current marketing year. The 2022/23 marketing year started June 1st, 2022 for wheat, August 1st, 2022 for cotton and rice, September 1st, 2022 for beans, corn, and sorghum, and October 1st, 2022 for soybean products. The marketing year for beef and pork is the calendar year.
Wheat had a net reduction of 42,100 tons (-1.5 million bushels). Nigeria purchased 25,100 tons and Colombia bought 7,700 tons, but there were a handful of cancellations, led by unknown destinations at 53,000 tons. Nearing the end of the 2022/23 marketing year, wheat exports are 694 million bushels, compared to 714.2 million late in 2021/22. Sales of 336,800 tons (12.4 million bushels) for 2023/24 delivery were mainly to the Philippines (80,000 tons) and unknown destinations (78,500 tons).
Corn had a net reduction of 339,000 tons (-13.3 million bushels). Sales ranging from 8,200 to 35,500 tons were more than offset by cancellations ranging from 24,300 ton 271,200 tons. Just outside of the final quarter of the marketing year, corn exports are 1.498 billion bushels, compared to 2.319 billion a year ago. Sales of 74,000 tons (2.9 million bushels) for 2023/24 delivery were primarily to Mexico (61,000 tons).
Sorghum had a net reduction of 3,700 tons (-100,000 bushels) following a cancellation by China. Sorghum exports are 64.6 million bushels, compared to 266.3 million this time last year.
Rice had a net reduction of 31,700 tons. Sales ranging from 100 to 20,500 tons were offset by cancellations from Iraq (40,000 tons) and Japan (27,200 tons). Rice exports are 1,830,400 tons, compared to 2,657,400 a year ago. Sales of 73,200 tons for 2023/24 delivery were mostly to Iraq (40,000 tons) and Japan (27,200 tons).
Soybeans were pegged at 17,000 tons (600,000 bushels), down 73% from the week ending May 4th and 89% from the four-week average. Mexico picked up 34,200 tons and unknown destinations purchased 33,600 tons, but China canceled on 119,200 tons. So far, this marketing year, soybean exports are 1.866 billion bushels, compared to 2.176 billion last year. Sales of 663,800 tons (24.4 million bushels) were mainly to unknown destinations (390,000 tons) and China (187,000 tons).
Soybean meal came out at 202,500 tons, 27% lower than the previous week, but 7% higher than the four-week average. The Philippines bought 52,000 tons and Colombia picked up 27,700 tons. For the marketing year to date, soybean meal exports are 10,223,000 tons, compared to 10,361,400 a year ago. Sales of 89,000 tons for 2023/24 delivery were primarily to unknown destinations (45,000 tons) and New Zealand (30,000 tons).
Soybean oil was reported at 900 tons, a big increase from the week before, but a decrease of 77% from the four-week average. Canada purchased 400 tons. Cumulative soybean oil exports are 118,600 tons, compared to 665,300 last year.
Upland cotton was pegged at 132,400 bales, a drop of 46% from the prior week and 28% from the four-week average. China bought 62,000 bales and Vietnam picked up 24,000 bales. 2022/23 upland cotton exports are 12,631,600 bales, compared to 14,861,800 in 2021/22. Sales of 28,100 bales for 2023/24 delivery were mostly to Bangladesh (12,000 bales) and South Korea (6,600 bales).
Net beef sales totaled 17,400 tons, up 5% on the week and 7% from the four-week average. The reported purchasers were Japan (4,600 tons), South Korea (3,500 tons), China (2,900 tons), Mexico (2,500 tons), and Taiwan (1,600 tons), with cancellations by Indonesia (200 tons) and Chile (100 tons). Shipments of 18,300 tons were 24% greater than the previous week and 11% above the four-week average, mostly to South Korea (4,600 tons), Japan (3,800 tons), China (3,400 tons), Taiwan (2,000 tons), and Mexico (1,300 tons).
Net pork sales totaled 31,900 tons, 6% more than the week before, but 25% less than the four-week average. The listed buyers were Mexico (15,500 tons), China (5,200 tons), Japan (2,700 tons), Colombia (1,600 tons), and Canada (1,000 tons). Shipments of 36,800 tons were unchanged from both the prior week and the four-week average, mainly to Mexico (15,400 tons), China (6,600 tons), Japan (4,100 tons), South Korea (3,100 tons), and Canada (2,100 tons).