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China top weekly destination for U.S. soybeans

More U.S. soybeans left the U.S. ports for China last week. According to the USDA’s weekly export inspections report, more than 400,000 tons of U.S. beans were shipped to China, with another more than 130,000 tons heading to European Union nations. This round of soybeans would have likely been purchased before China placed a 25% tariff on U.S. soybeans and shifted focus to supplies from Brazil, or during the trade war “ceasefire” that started in December. Beijing did agree to buy a substantial amount of U.S. soybeans last week, but actual purchase announcements might be delayed by Lunar New Year celebrations. The USDA will update its soybean export estimate Friday.

As of the week ending January 31st, soybean export inspections this marketing year continue to trail last marketing year by a wide margins because of the increased competition and tariffs. The 2018/19 marketing year runs through the end of May for wheat and the end of August for beans, corn, and sorghum.

Wheat came out at 440,031 tons, up 72,427 from the week ending January 24th and 10,429 higher than the week ending February 1st, 2018. The top destinations were Mexico and Egypt. With more than a quarter left in the 2018/19 marketing year, wheat inspections are 14,821,995 tons, compared to 16,644,151 in 2017/18.

Corn was reported at 901,214 tons, down 67,371 from the previous week and 192,027 lower than this time last year. Mexico and Japan were the primarily weekly destinations. For the marketing year to date, corn inspections are 22,466,231 tons, compared to 14,890,398 a year ago.

Soybeans were pegged at 975,775 tons, 32,295 more than the week before, but 325,731 less than a year ago. So far, this marketing year, soybean inspections are 21,452,986 tons, compared to 34,712,374 last year.

Sorghum inspections totaled 24,157 tons, an increase of 16,552 on the week, but a decrease of 172,298 on the year. The listed destinations were Japan, Mexico, and South Korea. 2018/19 sorghum inspections are 596,360 tons, compared to 2,334,949 in 2017/18.