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China shows up big in the weekly export numbers

China bought substantial amounts of a few different commodities during the week ending April 23rd. The USDA says China purchased more than 600,000 tons of U.S. soybeans, more than 300,000 tons of U.S. sorghum, and more than 35,000 tons of U.S. pork, along with more than 400,000 bales of U.S. cotton and 1,000 tons of U.S. beef. Those moves came as Beijing looks to add to domestic stockpiles, limit price inflation, and make up for some of the protein shortfall caused by the African swine fever outbreak. Corn, soybean product, and wheat sales were also up on the week, but rice exports were a marketing year low. The USDA’s next set of supply and demand estimates is out May 12th.

Old crop corn and wheat sales topped pre-report estimates, while soybeans and soybean products were near the high end of analysts’ expectations. Physical shipments of sorghum were more than what’s needed to meet projections for the current marketing year. The 2019/20 marketing year got underway June 1st for wheat, August 1st for cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.

Wheat came out at 467,400 tons (17.2 million bushels), up 91% from the week ending April 16th and sharply higher than the four-week average. Taiwan purchased 150,000 tons and the Philippines bought 110,200 tons, while unknown destinations canceled on 58,500 tons. With just over a month left in the 2019/20 marketing year for wheat, sales are 952.8 million bushels, compared to 935.6 million late in 2018/19. Sales of 155,100 tons (5.7 million bushels) for 2020/21 delivery were mainly to Taiwan (60,100 tons) and Japan (32,500 tons).

Corn was reported at 1,356,700 tons (53.4 million bushels), 87% larger than the previous week and 19% more than the four-week average. Mexico picked up 544,700 tons and Japan purchased 199,000 tons, while unknown destinations canceled on 83,000 tons. Closing in on the final quarter of the marketing year, corn sales are 1.447 billion bushels, compared to 1.813 billion this time last year. Sales of 399,000 tons (13.3 million bushels) for 2020/21 delivery were primarily to Mexico (288,200 tons) and Jamaica (24,000 tons).

Sorghum sales were 306,000 tons (12.0 million bushels). China bought 318,700 tons and Japan picked up 9,500 tons, while unknown destinations canceled on 22,000 tons. For the marketing year to date, sorghum exports are 139.4 million bushels, compared to 59.5 million a year ago.

Rice exports of 28,700 tons were down 57% from the week before and 46% lower than the four-week average. Canada purchased 8,200 tons, while Honduras and Saudi Arabia each bought 7,000 tons. Rice sales are 9,405,400 tons, compared to 10,176,400 last year.

Soybeans were pegged at 1,078,300 tons (39.6 million bushels), a big jump from both the prior week and the four-week average. China picked up 618,100 tons and Egypt purchased 194,000 tons. So far, this marketing year, soybean sales are 1.435 billion bushels, compared to 1.656 billion a year ago. Sales of 105,000 tons (3.9 million bushels) for 2020/21 delivery were to Mexico (104,000 tons) and Thailand (1,000 tons).

Soybean meal came out at 163,600 tons, up 59% from the previous week and 13% higher than the four-week average. Colombia bought 87,700 tons and Canada picked up 44,000 tons, but New Zealand canceled on 25,000 tons. At this point in the marketing year, soybean meal sales are 9,405,400 tons, compared to 10,176,400 last year. Sales of 60,100 tons for 2020/21 delivery were to unknown destinations (60,000 tons) and Canada (100 tons).

Soybean oil was reported at 29,800 tons. Morocco purchased 9,000 tons and the Dominican Republic bought 4,900 tons. Cumulative soybean oil sales are 996,400 tons, compared to 669,700 a year ago.

Upland cotton exports of 434,800 bales were significantly more than the week before, but significantly less than the four-week average. China picked up 422,400 bales and Vietnam purchased 13,900 bales, while Turkey canceled on 9,200 bales. 2019/20 upland cotton sales are 15,553,900 bales, compared to 13,778,000 bales in 2018/19. Sales of 148,500 bales for 2020/21 delivery were mainly to China (115,300 bales) and Turkey (47,700 bales).

Net beef sales totaled 9,400 tons, a decrease of 16% on the week and 43% from the four-week average. The reported buyers were Japan (2,900 tons), Taiwan (2,300 tons), South Korea (1,200 tons), Canada (1,100 tons), and China (1,000 tons), with a cancellation by the Philippines (300 tons). Shipments of 14,200 tons were 5% more than the previous week, but 13% less than the four-week average, primarily to South Korea (4,600 tons), Japan (4,200 tons), Canada (1,600 tons), Hong Kong (1,200 tons), and Taiwan (1,000 tons).

Net pork sales totaled 50,300 tons, an increase of 27% from the week before and 12% from the four-week average. The listed purchasers were China (35,100 tons), Mexico (7,200 tons), Japan (3,100 tons), the Philippines (900 tons), and South Korea (800 tons). Shipments of 44,700 tons were up 9% from the prior week and 15% from the four-week average, mostly to China (20,700 tons), Mexico (9,600 tons), Japan (5,000 tons), South Korea (3,300 tons), and Canada (1,600 tons).