News

Cotton, sorghum exports hit marketing year highs

China continues to buy U.S. ag goods even as the trade war drags on. China was the leading buyer of U.S. soybeans and pork during the week ending November 7th, also buying U.S. beef and upland cotton. Sorghum export sales were a new marketing year high, mostly to unknown destinations, while Nigeria was the top buyer for wheat and El Salvador was the leading purchaser of corn. The USDA’s next set of supply, demand, and production estimates is out December 10th.

Overall, soybean oil export sales topped most pre-report estimates, while corn, soybeans, soybean meal, and wheat were within analysts’ expectations. Physical shipments of soybeans were above what’s needed weekly to meet USDA projections for the 2019/20 marketing year. The current 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 238,600 tons (8.8 million bushels), down 34% from the week ending October 31st and 37% lower than the four-week average. Nigeria purchased 40,000 tons and the Philippines bought 36,000 tons. At this point in the 2019/20 marketing year, wheat sales are 557.7 million bushels, compared to 521.2 million in 2018/19.

Corn was reported at 581,600 tons (22.9 million bushels), up 19% from the previous week and 23% higher than the four-week average. El Salvador picked up 103,400 tons and Japan purchased 97,600 tons. About two months into the marketing year, corn sales are 491.1 million bushels, compared to 922.2 million this time last year.

Sorghum was a new marketing year high at 280,300 tons (11.0 million bushels), a jump of 29% from the week before and significantly larger than the four-week average. Unknown destinations bought 250,000 tons and Mexico picked up 20,300 tons. Sorghum sales are 32.2 million bushels, compared to 10.1 million a year ago.

Rice exports of 61,200 tons were 15% more than the prior week, but 11% less than the four-week average. Mexico purchased 25,800 tons and Haiti bought 15,300 tons. Roughly a quarter into the marketing year, rice sales are 1,669,900 tons, compared to 1,228,000 last year.

Soybeans were pegged at 1,253,000 tons (46.0 million bushels), down 31% from the previous week, but up 5% from the four-week average. China picked up 760,500 tons and unknown destinations purchased 129,200 tons, while the Philippines canceled on 46,500 tons. So far, this marketing year, soybean sales are 818.5 million bushels, compared to 804.0 million last marketing year. Sales of 3,000 tons (100,000 bushels) for 2020/21 delivery were to Japan.

Soybean meal was reported at 345,300 tons. The Philippines bought 137,900 tons and Colombia picked up 64,100 tons. Cumulative soybean meal sales are 4,513,300 tons, compared to 5,260,000 a year ago. Sales of 500 tons for 2020/21 delivery were to Japan.

Soybean oil came out at 30,600 tons. Unknown destinations purchased 10,300 tons and South Korea bought 10,000 tons. A little more than a month into the marketing year, soybean oil sales are 267,500 tons, compared to 262,100 last year at this time.

Upland cotton sales were a new marketing year high at 345,100 bales, significantly higher than both the week before and the four-week average. Pakistan picked up 117,000 bales and China purchased 83,300 bales. 2019/20 cotton exports are 9,893,800 bales, compared to early in 9,306,200 in 2018/19. Sales of 1,100 bales for 2020/21 delivery were to Indonesia.

Net beef exports totaled 25,300 tons, a big jump from the prior week and 92% larger than the four-week average. The listed buyers were Japan (7,100 tons), South Korea (4,500 tons), Mexico (4,400 tons), China (1,400 tons), and Egypt (1,400 tons). Net sales of 2,800 tons for 2020 delivery were mainly to South Korea (2,000 tons), the Philippines (300 tons), and Taiwan (300 tons), with a cancellation by Japan (100 tons).

Net pork sales were 19,900 tons, an increase of 19% on the week, but a decrease of 78% from the four-week average. The reported purchasers were China (5,500 tons), Japan (5,100 tons), Mexico (2,700 tons), Canada (1,800 tons), and South Korea (1,100 tons), with a cancellation by Guatemala (200 tons). Sales of 10,800 tons for 2020 delivery were primarily to China (9,900 tons), South Korea (300 tons), Japan (200 tons), and Australia (100 tons).