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Cotton, rice export sales hit marketing year highs

The USDA reports cotton and rice export sales during the week ending February 2^nd were marketing year highs. Cotton topped a quarter million bales with China and Turkey leading the way, both key cotton milling and textile production markets. Rice sales were more than 110,000 tons, with Colombia topping the list. Soybean product sales also saw week to week improvements, while corn, soybeans, wheat, sorghum, beef, and pork all declined. Export demand is driven by several factors including seasonal trends and currency prices. The USDA’s next set of supply and demand estimates is out March 8^th.

Physical shipments of soybeans and wheat were more than what’s needed to meet projections for the current marketing year. The 2022/23 marketing year started June 1^st, 2022 for wheat, 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 131,400 tons (4.8 million bushels), down 4% from the week ending January 26^th and 56% from the four-week average. Mexico purchased 76,000 tons and Colombia bought 43,600 tons, while South Korea canceled on 60,000 tons and Iraq canceled on 47,900 tons. At this point in the 2022/23 marketing year, wheat exports are 599 million bushels, compared to 637.4 million in 2021/22. Sales of 19,500 tons (700,000 bushels) for 2023/24 delivery were mainly to Colombia (12,500 tons) and Mexico (6,500 tons).

Corn was reported at 1,160,300 tons (45.7 million bushels), 27% less than the previous week, but 19% more than the four-week average. Japan picked up 388,200 tons and unknown destinations purchased 308,200 tons. For the marketing year to date, corn exports are 1.055 billion bushels, compared to 1.8 billion this time last year. Sales of 10,000 tons for 2023/24 delivery were to Japan.

Sorghum sales were 53,000 tons (2.1 million bushels), 52% lower than the week before and 43% below the four-week average, all to China. Sorghum exports are 30.9 million bushels, compared to 250.3 million a year ago.

Rice sales were 112,800 tons, a big jump from both the prior week and the four-week average. Colombia bought 61,200 tons and Nicaragua picked up 25,000 tons. Rice exports are 1,276,600 tons, compared to 2,108,300 last year.

Soybeans were pegged at 459,400 tons (16.9 million bushels), a decline of 38% on the week and 49% from the four-week average. China purchased 518,900 tons and Spain bought 139,600 tons, but unknown destinations canceled on 387,000 tons. So far, this marketing year, soybean exports are 1.754 billion bushels, compared to 1.718 billion a year ago. Sales of 185,000 tons (6.8 million bushels) for 2023/24 delivery were to unknown destinations (132,000 tons) and China (53,000 tons).

Soybean meal came out at 181,700 tons, 10% higher than the previous week, but 13% lower than the four-week average. Colombia picked up 64,900 tons and South Korea purchased 50,000 tons, while unknown destinations canceled on 42,000 tons. Midway through the second quarter of the marketing year, soybean meal exports are 7,216,700 tons, compared to 7,722,000 last year. Sales of 900 tons for 2023/24 delivery were to Canada.

Soybean oil was reported at 1,900 tons, a solid improvement from the week before and 79% larger than the four-week average. The Dominican Republic bought 1,200 tons. Cumulative soybean oil exports are 43,300 tons, compared to 487,600 a year ago.

Upland cotton was pegged at 262,800 bales, a jump of 54% on the week and 58% from the four-week average. China picked up 87,700 bales and Turkey purchased 72,600 bales. 2022/23 upland cotton exports are 9,716,000 bales, compared to 12,176,000 in 2021/22. Sales of 4,800 bales for 2023/24 delivery were primarily to Thailand (3,300 bales).

Net beef sales totaled 16,400 tons. The reported buyers were South Korea (4,400 tons), Japan (3,500 tons), Mexico (2,700 tons), Canada (1,400 tons), and China (1,400 tons). Shipments of 15,600 tons were mostly to Japan (4,800 tons), South Korea (4,400 tons), China (1,900 tons), Mexico (1,200 tons), and Taiwan (900 tons).

Net pork sales totaled 28,800 tons. The listed purchasers were Mexico (12,700 tons), South Korea (4,700 tons), China (3,400 tons), Colombia (1,600 tons), and Australia (1,500 tons). Shipments of 30,400 tons were primarily to Mexico (14,000 tons), China (4,600 tons), Japan (3,000 tons), Canada (2,100 tons), and South Korea (2,100 tons).