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Big week for U.S. pork, soybean export sales

China was the leading buyer of U.S. pork, sorghum, soybeans, and cotton during the week ending September 10th, also picking up U.S. corn and beef. The purchases come as Beijing tries to meet purchase obligations under the Phase One trade agreement and despite continued political tensions with the U.S. China’s National Development and Reform Commission says it will leave low tariff rate import quotas for wheat, corn, rice, and cotton unchanged for 2021. Unknown destinations was a significant buyer of U.S. corn and soybeans, which could turn out to be China when it’s time for delivery. The USDA’s next set of supply and demand estimates is out October 9th.

Physical shipments of soybeans and wheat were above what’s needed to meet 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 beans, corn, and sorghum, while 2019/20 runs through the end of September for soybean products.

Wheat came out at 335,700 tons (12.3 million bushels), down 31% from the week ending September 3rd and 42% lower than the four-week average. Indonesia purchased 91,400 tons and Vietnam bought 63,000 tons, but unknown destinations canceled on 64,500 tons. Just over a quarter into the 2020/21 marketing year, wheat sales are 482.5 million bushels, compared to 451.7 million in 2019/20. Sales of 300 tons for 2021/22 delivery were to Malaysia.

Corn was reported at 1,609,200 tons (63.4 million bushels). Unknown destinations picked up 360,200 tons and China purchased 359,700 tons. Just a couple of weeks into the marketing year, corn sales are 805.3 million bushels, compared to 340.7 million this time last year.

Sorghum sales were 121,500 tons (4.8 million bushels). China bought 121,800 tons and Japan picked up 3,300 tons, while unknown destinations canceled on 3,600 tons. For the marketing year to date, sorghum sales are 101.2 million bushels, compared to 2.7 million a year ago.

Rice sales were 78,700 tons, up sharply from both the previous week and the four-week average. Brazil purchased 30,000 tons and Haiti bought 15,200 tons. At this point in the marketing year, rice sales are 573,300 tons, compared to 1,153,200 last year.

Soybeans were pegged at 2,457,100 tons (90.3 million bushels). China picked up 1,487,100 tons and unknown destinations purchased 499,300 tons. So far, this marketing year, soybean sales are 1.188 billion bushels, compared to 410.8 million a year ago.

Soybean meal had a net reduction of 105,400 tons. Sales of 3,300 to 8,100 tons were more than offset by a cancellation from Canada (129,500 tons). With about three weeks remaining in the 2019/20 marketing year, soybean meal sales are 12,080,100 tons, compared to 12,178,100 late in 2018/19. Sales of 197,300 tons for 2020/21 delivery were mainly to Canada (121,400 tons) and Guatemala (30,200 tons), but unknown destinations canceled on 32,400 tons.

Soybean oil came out at 100 tons. Mexico bought 700 tons, but Canada canceled on 700 tons. Cumulative soybean oil sales are 1,277,000 tons, compared to 918,700 last year.

Upland cotton was reported at 519,600 bales, higher than both the week before and the four-week average. China picked up 440,100 bales and Pakistan purchased 17,600 bales. 2020/21 upland cotton exports are 7,629,500 bales, compared to 8,407,200 in 2019/20.

Net beef sales totaled 14,300 tons, a decrease of 8% on the week and 2% from the four-week average. The listed buyers were South Korea (4,400 tons), Japan (4,000 tons), China (1,800 tons), Mexico (1,400 tons), and Canada. Shipments of 14,100 tons were 12% less than the previous week and 19% under the four-week average, primarily to Japan (4,000 tons), South Korea (3,900 tons), Hong Kong (1,400 tons), Taiwan (1,200 tons), and Mexico (1,000 tons). Sales of 500 tons for 2021 delivery were to Japan.

Net pork sales totaled 50,600 tons, an increase of 68% from the week before and 41% from the four-week average. The reported purchasers were China (35,900 tons), Mexico (5,900 tons), Japan (3,200 tons), Canada (1,500 tons), and Australia (1,300 tons), with a cancellation by Nicaragua (100 tons). Physical shipments were down 15% from the prior week and 12% from the four-week average, mostly to Mexico (9,200 tons), China (8,300 tons), Japan (3,700 tons), Canada (1,900 tons), and South Korea (1,400 tons).