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Cotton export sales hit a marketing year high

Cotton export sales shot sharply higher during the week ending June 1^st. The USDA says sales of upland cotton hit a marketing year high at more than 480,000 bales, with most of that to China, which will primarily be used to manufacture clothing.  Soybean and pork export sales also showed week-to-week improvements, while sales of other major commodities were down on the week. Export trade is driven by several factors including the value of the dollar relative to other currencies and seasonal shifts in demand. The USDA’s next set of supply and demand estimates is out Friday, June 9^th at Noon Eastern/11 Central.

Physical shipments of corn were more than what’s needed to meet USDA projections for the current marketing year. The 2023/24 marketing year started June 1^st, 2023 for wheat, while 2022/23 got underway August 1^st, 2022 for cotton and rice, September 1^st, 2022 for beans, corn, and sorghum, and October 1^st, 2022 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 234,800 tons (8.6 million bushels). Taiwan purchased 56,000 tons and Colombia bought 40,800 tons. Accumulated 2022/23 wheat exports were 17,758,500 tons, 5% less than the 2021/22 total of 18,668,900 tons. The USDA says 877,400 tons of sales were carried over from the 2022/23 marketing year. 2023/24 wheat exports are 139.1 million bushels, compared to 167.5 million at the outset of 2022/23.

Corn was reported at 172,700 tons (6.8 million bushels), down 8% from the week ending May 25^th, but up considerably from the four-week average. Japan picked up 117,500 tons and Mexico purchased 44,700 tons, while unknown destinations canceled 89,600 tons. In the final quarter of the 2022/23 marketing year, corn exports are 1.509 billion bushels, compared to 2.343 billion in 2021/22. A net reduction of 106,800 tons (-4.2 million bushels) for 2023/24 delivery followed a handful of cancellations led by Mexico (119,900 tons).

Sorghum sales were 65,200 tons (2.6 million bushels), 50% lower than the previous week, but 43% higher than the four-week average. Unknown destinations bought 68,000 tons, while China canceled on 2,800 tons. Sorghum exports are 72.5 million bushels, compared to 267.9 million a year ago. Sales of 200 tons for 2023/24 delivery were to Japan.

Rice sales were 11,400 tons, 32% under the week before and unchanged from the four-week average. Saudi Arabia picked up 8,600 tons and Honduras purchased 1,500 tons. Rice exports are 1,888,900 tons, compared to 2,715,400 last year. Sales of 16,000 tons for 2023/24 delivery were to Honduras.

Soybeans were pegged at 207,200 tons (7.6 million bushels), an increase of 68% from the prior week and significantly more than the four-week average. Japan bought 97,100 tons and Germany picked up 68,700 tons, while unknown destinations canceled on 47,900 tons. So far, this marketing year, soybean exports are 1.88 billion bushels, compared to 2.201 billion a year ago. Sales of 264,600 tons (9.7 million bushels) for 2023/24 delivery were mainly to China (131,000 tons) and Mexico (60,000 tons).

Soybean meal came out at 177,600 tons, a decline of 56% on the week and 42% from the four-week average. Colombia purchased 46,000 tons and the Dominican Republic bought 36,000 tons. For the marketing year to date, soybean meal exports are 11,147,300 tons, compared to 10,844,300 last year. Sales of 90,000 tons for 2023/24 delivery were to Ecuador.

Soybean oil had a net reduction of 300 tons. Sri Lanka picked up 300 tons, but there were cancellations by Canada (500 tons) and Mexico (100 tons). Cumulative soybean oil exports are 126,200 tons, compared to 676,800 a year ago. Sales of 100 tons for 2023/24 delivery were to Mexico.

Upland cotton was pegged at 480,400 bales, a jump of 79% from the previous week and larger than the four-week average. China purchased 384,700 bales and Pakistan bought 51,600 bales. 2022/23 upland cotton exports are 13,511,100 bales, compared to 15,512,200 in 2021/22. Sales of 30,800 bales for 2023/24 delivery were primarily to Turkey (20,700 bales).

Net beef sales totaled 12,800 tons, a decline of 29% from the week before and 27% from the four-week average. The reported purchasers were Japan (3,900 tons), South Korea (3,900 tons), Mexico (1,900 tons), Taiwan (1,000 tons), and Canada (900 tons), with a cancellation by China (100 tons). Shipments of 15,400 tons were 3% less than the prior week and 6% under the four-week average, mostly to Japan (4,000 tons), South Korea (3,700 tons), China (2,500 tons), Canada, and Mexico (1,200 tons).

Net pork sales totaled 25,500 tons, up 13% on the week, but down 11% from the four-week average. The listed buyers were Mexico (9,100 tons), China (8,100 tons), Japan (3,200 tons), South Korea (2,000 tons), and Colombia (1,500 tons), with cancellations by Australia (500 tons), Nicaragua (500 tons), and Taiwan (100 tons). Shipments of 25,100 tons were a decrease of 26% from the previous week and 31% from the four-week average, mainly to Mexico (7,400 tons), Japan (4,000 tons), China (3,900 tons), South Korea (2,600 tons), and Canada (1,500 tons).