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China buys U.S. pork for the first time in weeks

China bought U.S. pork last week after being out of the market for about a month. The USDA says China bought more than 18,000 tons of U.S. pork, the first reported sales since the week ending July 1^st, as China continues efforts to rebuild their domestic hog herd while still battling African swine fever and trying to meet trade pact obligations. China also bought a smaller amount of U.S. beef during the week ending July 29^th, but total beef sales fell 33% on the week. Old crop corn and soybean export sales continued their slowdown into the end of the marketing year, while new crop sales for both were solid. The USDA’s next set of supply and demand estimates is out August 12^th.

The 2021/22 marketing year started June 1^st, 2021 for wheat and August 1^st, 2021 for cotton and rice, while 2020/21 got underway September 1^st, 2020 for corn, sorghum, and soybeans, and October 1^st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 308,300 tons (11.3 million bushels), down 40% from the week ending July 22^nd and 28% from the four-week average. Mexico purchased 97,800 tons and South Korea bought 54,600 tons. Just shy of two months into the 2021/22 marketing year, wheat sales are 309.1 million bushels, compared to 372 million in 2020/21.

Corn was reported at 68,200 tons (2.7 million bushels). Mexico picked up 205,400 tons and Canada purchased 65,200 tons, but there were several cancellations, led by China at 112,500 tons. Nearing the end of the 2020/21 marketing year, corn sales are 2.745 billion bushels, compared to 1.724 billion late in 2019/20. Sales of 830,200 tons (32.7 million bushels) for 2021/22 delivery were mainly to Mexico (238,800 tons) and Japan (210,700 tons).

Sorghum sales were 2,700 tons (100,000 bushels). Mexico bought 4,000 tons, but China canceled on 1,300 tons. Sorghum exports are 282.8 million bushels, compared to 171.3 million this time last year.

Rice had a net reduction of 8,500 tons. Sales of 200 to 1,900 tons were more than offset by cancellations from Haiti (12,200 tons) and Mexico (500 tons). With just a couple of reporting days left in the marketing year, rice exports are 3,430,600 tons, compared to 3,388,900 a year ago. Sales of 101,000 tons for 2021/22 delivery were primarily to Iraq (40,000 tons) and Mexico (33,800 tons).

Soybeans were pegged at 11,400 tons (400,000 bushels). Vietnam picked up 37,200 tons and Indonesia purchased 28,700 tons, while unknown destinations canceled on 51,000 tons and China canceled on 41,000 tons. So far, this marketing year, soybean sales are 2.275 billion bushels, compared to 1.725 billion last year. Sales of 424,800 tons (15.6 million bushels) for 2021/22 delivery were mostly to unknown destinations (142,000 tons) and China (129,000 tons).

Soybean meal came out at 135,400 tons, up 55% from the previous week and 24% from the four-week average. Mexico bought 34,900 tons and the Philippines picked up 30,200 tons. Roughly two months remain in the marketing year, with soybean meal exports at 11,812,200 tons, compared to 11,775,100 a year ago. Sales of 18,700 tons for 2021/22 delivery were mainly to Morocco (16,500 tons) and Jamaica (6,500 tons), but with a cancellation by Ecuador (30,000 tons).

Soybean oil was reported at 3,200 tons, 48% higher than the week before and quite a bit more than the four-week average. Venezuela purchased 3,000 tons and Canada bought 200 tons. Cumulative soybean oil exports are 682,600 tons, compared to 1,269,300 last year.

Upland cotton was pegged at 17,100 bales, considerably larger than the prior week, but 45% lower than the four-week average. Mexico picked up 9,300 bales and South Korea purchased 4,200 tons. 2020/21 upland cotton exports are 16,206,400 bales, compared to 17,056,400 in 2019/20. Sales of 149,300 bales for 2021/22 delivery were primarily to Costa Rica (36,500 bales), Pakistan (35,300 bales), and Turkey (35,300 bales).

Net beef sales totaled 15,000 tons, a decrease of 33% on the week and 26% from the four-week average. The reported buyers were Japan (4,000 tons), South Korea (3,300 tons), China (2,300 tons), Canada (1,200 tons), and Indonesia (1,100 tons). Shipments of 20,400 tons were up 6% from the previous week and 10% from the four-week average, mostly to South Korea (6,800 tons), Japan (4,600 tons), China (3,600 tons), Mexico (1,400 tons), and Taiwan (1,200 tons). Sales of 100 tons for 2022 delivery were to Japan.

Net pork sales totaled 38,800 tons, 1% higher than the week before and 32% more than the four-week average. The listed purchasers were China (18,300 tons), Mexico (9,200 tons), Japan (3,300 tons), South Korea (3,100 tons), and Canada (1,600 tons), with cancellations by Nicaragua (200 tons) and Chile (100 tons). Shipments of 28,400 tons were 5% lower than the prior week and 2% less than the four-week average, mainly to Mexico (12,100 tons), China (4,900 tons), Japan (4,000 tons), Canada (1,900 tons), and South Korea (1,300 tons).