China buys U.S. beef, pork, soybeans
The USDA says China bought U.S. pork during the week ending August 5th, the second week in a row with reported sales to the world’s biggest consumer of pork, just a much smaller amount. China bought 600 tons of U.S. pork last week, well below the more than 18,000 tons from the previous week, but still a positive sign for demand after being out of the market for about a month. China also bought 1,000 tons of U.S. beef, along with good amounts of old crop sorghum and old and new crop soybeans. Old crop corn exports were up sharply on the week and new crop sales were solid as the reality of Brazil’s much smaller than expected second corn crop starts to take hold. The USDA’s August supply and demand numbers were out on Thursday the 12th.
Physical shipments of wheat were above what’s needed to meet projections for the current marketing year. The 2021/22 marketing year started June 1st, 2021 for wheat and August 1st, 2021 for cotton and rice, while 2020/21 got underway September 1st, 2020 for beans, corn, and sorghum, and October 1st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.
Wheat came out at 293,100 tons (10.8 million bushels), down 5% from the week ending July 30th and 32% from the four-week average. Unknown destinations purchased 98,600 tons and Japan bought 34,300 tons. About two months into the 2021/22 marketing year, wheat sales are 319.9 million bushels, compared to 385.5 million in 2020/21.
Corn was reported at 377,600 tons (14.9 million bushels), up sharply from both the previous week and the four-week average. Mexico picked up 144,500 tons and Japan purchased 80,500 tons, while unknown destinations canceled on 76,800 tons. With less than a month remaining in 2020/21, corn sales are 2.760 billion bushels, compared to 1.739 billion late in 2019/20. Sales of 601,800 tons (23.7 million bushels) for 2021/22 delivery were mainly to unknown destinations (278,400 tons) and Colombia (80,500 tons).
Sorghum sales were 6,600 tons. China bought 5,600 tons and Mexico picked up 1,000 tons. Sorghum exports are 283.0 million bushels, compared to 182.4 million this time last year.
New crop rice export sales were 67,100 tons. Haiti purchased 37,800 tons and Mexico bought 20,900 tons. The total for 2020/21 was 3,195,900 tons, compared to 3,135,500 in 2019/20. 237,200 tons in outstanding sales were carried over from the 2020/21 marketing year, putting the running total for new crop at 522,400 tons, compared to 351,900 early on for old crop. Sales of 2,100 tons for 2022/23 delivery were to Japan.
Soybeans were pegged at 96,900 tons (3.6 million bushels), a solid increase from both the week before and the four-week average. China picked up 84,500 tons and Japan purchased 18,600 tons, while unknown destinations canceled on 30,000 tons. So far, this marketing year, soybean sales are 2.279 billion bushels, compared to 1.743 billion a year ago. Sales of 1,120,300 tons (41.2 million bushels) for 2021/22 delivery were primarily to unknown destinations (643,400 tons) and China (328,000 tons).
Soybean meal came out at 116,300 tons, 14% less than the prior week, but 29% more than the four-week average. Venezuela bought 20,600 tons and Guyana picked up 17,900 tons. For the marketing year to date, soybean meal sales are 11,928,500 tons, compared to 11,957,500 last year. Sales of 268,300 tons for 2021/22 delivery were mostly to the Philippines (89,000 tons) and Canada (79,900 tons).
Soybean oil was reported at 300 tons, all to Canada. Cumulative soybean oil sales are 682,900 tons, compared to 1,266,900 a year ago.
New crop upland cotton sales were 342,700 bales. China purchased 123,800 bales and Turkey bought 72,500 bales. The 2020/21 total was 14,882,100 bales, compared to 14,174,500 in 2019/20. There were 1,310,900 bales carried over from 2020/21 to 2021/22, putting the running new crop total at 4,976,400 bales, compared to 6,567,100 last year. Sales of 15,300 bales for 2022/23 delivery were to Mexico (5,600 bales), South Korea (4,400 bales), and Turkey (4,400 bales).
Net beef sales totaled 13,600 tons, a decrease of 9% on the week and 24% from the four-week average. The reported buyers were Japan (6,000 tons), South Korea (2,500 tons), Mexico (1,900 tons), China (1,000 tons), and Taiwan (700 tons). Shipments of 18,600 tons were down 9% from the previous week and 3% from the four-week average, mainly to South Korea (6,000 tons), Japan (4,400 tons), China (3,100 tons), Taiwan (1,500 tons), and Mexico (1,200 tons).
Net pork sales totaled 14,600 tons, 62% below the week before and 48% under the four-week average. The listed purchasers were Mexico (5,300 tons), Japan (5,200 tons), South Korea (2,000 tons), Canada (600 tons), and China (600 tons), with a cancellation by Australia (1,000 tons). Shipments of 27,600 tons were 3% lower than both the prior week and the four-week average, primarily to Mexico (12,600 tons), China (5,200 tons), Japan (3,800 tons), Canada (1,700 tons), and South Korea (1,500 tons).