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Beef, soybean export sales hit marketing year lows

The USDA says beef and soybean export sales fell to marketing year lows during the week ending March 2^nd. Beef was significantly lower than average following small cancellations by several key customers, while soybeans had a net reduction after big cancellations by unknown destinations and Pakistan. Pork, wheat, and cotton also saw week to week declines. Rice hit a marketing year high, and corn, sorghum, soybean products were all up solidly on the week. The USDA’s next round of supply and demand estimates is out April 11^th.

Physical shipments of soybeans were more than what’s needed to meet USDA projections for the current marketing year. The 2022/23 marketing year got underway June 1^st, 2022 for wheat, August 1^st, 2022 for cotton and rice, September 1^st, 2022 for beans, corn, and sorghum, and October 1^st, 2022 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 266,700 tons (9.8 million bushels), down 6% from the week ending February 23^rd, but up 11% from the four-week average. China purchased 137,000 tons and South Korea bought 87,000 tons, but unknown destinations canceled on 173,000 tons. Early in the final quarter of the 2022/23 marketing year, wheat exports are 639.4 million bushels, compared to 683 million in 2021/22. Sales of 70,000 tons (2.6 million bushels) for 2023/24 delivery were mainly to Mexico (41,000 tons) and Thailand (28,500 tons).

Corn was reported at 1,412,100 tons (55.6 million bushels), considerably larger than the previous week and 57% above the four-week average. Japan picked up 469,000 tons and South Korea purchased 377,900 tons. In the back half of the marketing year, corn exports are 1.207 billion bushels, compared to 1.976 billion a year ago. Sales of 113,200 tons (4.5 million bushels) were to Mexico.

Sorghum sales were 155,300 tons (6.1 million bushels), a solid jump from the week before and 93% greater than the four-week average, all to China. Sorghum exports are 47.6 million bushels, compared to 262.8 million this time last year.

Rice sales were 141,900 tons, a big increase from both the prior week and the four-week average. Colombia bought 65,000 tons and Haiti picked up 41,300 tons. Rice exports are 1,527,700 tons, compared to 2,323,200 a year ago. Sales of 5,000 tons for 2023/24 delivery were to Mexico.

Soybeans had a net reduction of 23,200 tons (-900,000 bushels). Sales of 25,500 to 178,500 tons were more than offset by cancellations of 307,600 tons by unknown destinations and 132,000 tons by Pakistan. So far, this marketing year, soybean exports are 1.79 billion bushels, compared to 1.924 billion this time last year. Sales of 172,300 tons (6.3 million bushels) for 2023/24 delivery were primarily to Pakistan (66,000 tons) and China (63,000 tons).

Soybean meal came out at 319,800 tons, up 86% on the week and 85% from the four-week average. The Philippines purchased 84,300 tons and Morocco bought 43,700 tons. For the marketing year to date, soybean meal exports are 8,045,300 tons, compared to 8,644,500 a year ago. Sales of 110,000 tons for 2023/24 delivery were to Ecuador (96,000 tons) and Indonesia (14,000 tons).

Soybean oil was reported at 7,300 tons. Mexico picked up 7,500 tons, while Canada canceled on 200 tons. Cumulative soybean oil exports are 59,300 tons, compared to 581,800 last year.

Upland cotton was pegged at 114,500 bales, a decline of 33% from the previous week and 57% from the four-week average. Vietnam purchased 44,700 bales and Turkey bought 17,400 bales. 2022/23 upland cotton exports are 10,643,400 bales, compared to 13,284,400 in 2021/22. A net reduction of 68,300 tons for 2023/24 followed a cancellation by Pakistan.

Net beef sales totaled 5,600 tons, a decrease of 31% from the week before and 67% from the four-week average. The reported purchasers were Japan (3,200 tons), Mexico (1,400 tons), China (500 tons), Canada (300 tons), and Hong Kong (200 tons), with a reduction by South Korea (1,100 tons). Shipments of 13,000 tons were 19% less than the prior week and 20% under the four-week average, primarily to South Korea (3,300 tons), Japan (3,000 tons), China (2,200 tons), Mexico (1,200 tons), and Taiwan (1,100 tons).

Net pork sales totaled 22,100 tons, down 29% on the week and 44% from the four-week average. The listed buyers were Mexico (10,700 tons), South Korea (3,800 tons), Colombia (1,200 tons), Chile (1,100 tons), and China (800 tons), with a reduction by Canada (300 tons). Shipments of 30,300 tons were unchanged from the previous week and up 1% from the four-week average, mostly to Mexico (13,700 tons), Japan (4,200 tons), China (3,900 tons), South Korea (2,500 tons), and Canada (1,600 tons).