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China leads the way on new crop corn, soybean exports

The recent strong demand from China led to a strong week for new crop corn and soybean export sales, as both topped two million tons, but old crop corn and bean sales were below average following cancellations by unknown destinations. The USDA says China was also the biggest buyer of U.S. sorghum and wheat during the week ending July 16th. Pork sales were a little bit lower than average, but still topped 30,000 tons, led by Mexico and China, while beef exports were down more than 40% on the week at 15,600 tons. Soybean meal hit a marketing year low and old crop cotton was a net reduction because of several cancellations. The USDA’s next set of supply and demand estimates is out August 12th.

Physical shipments of corn and wheat were above what’s needed to meet USDA projections for the current respective marketing years. The 2020/21 marketing year started June 1st for wheat, while 2019/20 runs through the end of July for cotton and rice, the end of August for corn, sorghum, and soybeans, and the end of September for soybean products.

Wheat came out at 616,700 tons (22.7 million bushels), down 19% from the week ending July 9th, but up 24% from the four-week average. China purchased 127,100 tons and Yemen bought 99,500 tons. About a month and a half into the 2020/21 marketing year, wheat sales are 328.5 million bushels, compared to 312.1 million in 2019/20.

Corn was reported at 220,600 tons (8.7 million bushels), a drop of 76% from the previous week and 56% from the four-week average. Japan picked up 154,100 tons and Peru purchased 106,300 tons, but unknown destinations canceled on 222,900 tons. With about a month and a half remaining in 2019/20, corn sales are 1.721 billion bushels, compared to 1.958 billion in 2018/19. Sales of 2,327,200 tons (91.6 million bushels) for 2020/21 delivery were mainly to China (1,960,000 tons) and Mexico (211,000 tons).

Sorghum sales were 77,200 tons (3.0 million bushels), 6% larger than the week before and 14% above the four-week average. China bought 78,600 tons, while Mexico canceled on 1,500 tons. At this point in the marketing year, sorghum sales are 171.7 million bushels, compared to 65.1 million a year ago. Sales of 175,000 tons (6.9 million bushels) for 2020/21 delivery were to China.

Rice sales were 12,900 tons, 30% lower than the prior week, but 1% higher than the four-week average. Colombia picked up 4,600 tons and Canada purchased 3,100 tons. Nearing the end of the current marketing year, rice sales are 3,364,400 tons, compared to 3,535,300 this time last year.

Soybeans were pegged at 365,200 tons (13.4 million bushels), 17% more than the previous week, but 31% less than the four-week average. China bought 209,900 tons and the Netherlands picked up 127,700 tons, while unknown destinations canceled on 63,000 tons. So far, this marketing year, soybean sales are 1.715 billion bushels, compared to 1.785 billion a year ago. Sales of 2,300,500 tons (84.5 million bushels) for 2020/21 delivery were primarily to China (1,486,000 tons) and unknown destinations (669,000 tons).

Soybean meal came out at 45,300 tons, a decline of 74% from the week before and 65% below the four-week average. Canada purchased 18,100 tons and Mexico bought 13,300 tons, but Ecuador canceled on 26,200 tons. For the marketing year to date, soybean meal sales are 11,410,200 tons, compared to 11,470,900 last year. Sales of 54,200 tons for 2020/21 delivery were mainly to Ecuador (30,000 tons) and Morocco (10,000 tons).

Soybean oil was reported at 20,200 tons. Morocco picked up 15,800 tons and the Dominican Republic purchased 12,700 tons, but unknown destinations canceled on 15,800 tons. Cumulative soybean oil sales are 1,244,100 tons, compared to 829,300 a year ago.

Upland cotton had a net reduction of 13,100 bales as sales of 200 to 5,500 bales were more than offset by cancellations of 2,300 to 8,800 bales. 2019/20 upland cotton exports are 17,006,200 bales, compared to 15,533,100 late in 2018/19. Sales of 10,900 bales for 2020/21 delivery were primarily to China (2,600 bales) and Mexico (2,300 bales).

Net beef sales totaled 15,600 tons, a decrease of 44% on the week and 15% from the four-week average. The listed buyers were South Korea (4,500 tons), Japan (4,200 tons), Taiwan (2,400 tons), Hong Kong (2,100 tons), and Canada (700 tons), with net cancellations for Indonesia (200 tons) and Guatemala (100 tons). Shipments of 16,100 tons were an increase of 4% from the previous week and 1% from the four-week average, mostly to South Korea (5,400 tons), Japan (4,400 tons), Taiwan (1,600 tons), Canada (1,100 tons), and Hong Kong (1,100 tons).

Net pork sales totaled 31,800 tons, down 17% from the week before and 4% from the four-week average. The reported purchasers were Mexico (12,900 tons), China (7,200 tons), Japan (4,300 tons), Canada (3,200 tons), and South Korea (1,300 tons), with a net cancellation by Nicaragua (200 tons). Shipments of 35,700 tons were up 22% from the prior week and 16% from the four-week average, mainly to China (13,700 tons), Mexico (8,600 tons), Japan (3,600 tons), Canada (3,500 tons), and South Korea (1,400 tons). Sales of 300 tons for 2021 delivery were to Australia.

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