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China buys U.S. soybeans, pork, cancels sorghum

The USDA says China did purchase U.S. agricultural goods last week. Beijing bought more than 135,000 tons of U.S. soybeans for the week ending May 23rd, mostly switched from unknown destinations, along with more than 39,000 tons of U.S. pork, but also cancelled on previously purchased U.S. sorghum, with all activity for the current marketing year. China has recently indicated it will not buy more U.S. soybeans until trade talks with the U.S. move forward, but that it also won’t cancel U.S. beans currently being shipped. Trade talks between the world’s two largest economies are expected to resume at the G20 meeting in Japan in late June.

2018/19 sales of corn, soybeans, and soybean oil were above most analysts’ estimates, while wheat and soybean meal were within expectations. 2019/20 wheat sales were above projections, while the other major commodities were close to the respective anticipated ranges. Physical shipments of corn were above what’s needed weekly to meet the USDA’s estimate for the current marketing year. The 2018/19 marketing year runs through the end of May for wheat, the end of August for beans, corn, and sorghum, and the end of September for soybean products.

Wheat came out at 153,000 tons (5.6 million bushels), up sharply from the week ending May 16th and 63% higher than the four-week average. Indonesia purchased 70,000 tons and Yemen bought 44,000 tons, but unknown destinations canceled on 140,000 tons. Nearing the end of the 2018/19 marketing year, wheat sales are 950.5 million bushels, compared to 872.4 million late in 2017/18. Sales of 411,800 tons (15.1 million bushels) for 2019/20 delivery were mainly to unknown destinations (83,400 tons) and Japan (82,600 tons).

Corn was reported at 906,800 tons (35.7 million bushels), a big jump from the previous week and 94% more than the four-week average. Japan picked up 713,200 tons and Mexico purchased 184,700 tons, but unknown destinations canceled on 203,200 tons. At this point in the marketing year, corn sales are 1.899 billion bushels, compared to 2.144 billion this time last year. Sales of 76,500 tons (3.0 million bushels) for 2019/20 delivery were primarily to Mexico (30,000 tons) and Panama (20,600 tons).

Sorghum had a net reduction of 50,700 tons (-2.0 million bushels). Sales of 1,900 to 11,000 tons were more than offset by cancellations from China (64,000 tons) and unknown destinations (10,000 tons). For the marketing year to date, sorghum sales are 61.4 million bushels, compared to 200.5 million a year ago.

Soybeans were pegged at 455,800 tons (16.7 million bushels), 15% below the week before, but 92% above the four-week average. China bought 135,700 tons and Spain picked up 57,000 tons. So far, this marketing year, soybean sales are 1.699 billion bushels, compared to 2.038 billion last year. Sales of 22,000 tons (800,000 bushels) for 2019/20 delivery were to unknown destinations (21,000 tons), Vietnam (600 tons), and Japan (400 tons).

Soybean meal came out at 183,300 tons, down 2% from the prior week, but up 20% from the four-week average. The Philippines purchased 70,900 tons and Mexico bought 43,900 tons. Cumulative soybean meal sales are 10,895,100 tons, compared to 10,907,900 a year ago. Sales of 65,000 tons for 2019/20 delivery were mostly to unknown destinations (30,000 tons) and the Dominican Republic (27,900 tons).

Soybean oil was reported at 35,100 tons, a significant rise from both the previous week and the four-week average. South Korea picked up 33,000 tons and the Dominican Republic purchased 6,000 tons. 2018/19 soybean oil sales are 741,100 tons, compared to 875,000 in 2017/18.

Net beef sales totaled 21,600 tons, a decrease of 11% on the week, but an increase of 14% from the four-week average. The listed buyers were Hong Kong (7,400 tons), Japan (5,200 tons), South Korea (3,300 tons), Taiwan (2,100 tons), and Chile (1,100 tons). Sales of 100 tons for 2020 delivery were to South Korea.

Net pork sales totaled 54,700 tons, 18% more than the prior week and quite a bit larger than the four-week average. The reported purchasers were China (39,100 tons), Mexico (8,900 tons), Canada (1,500 tons), Chile (1,400 tons), and Japan (1,100 tons), while Guatemala and Panama both canceled on 100 tons.