Export sales generally down on the week
U.S. export sales continue to face some strong headwinds. That’s due to several factors, including recent relative strength in the U.S. dollar, seasonal trends, including Brazil’s record soybean crop hitting the market, and high prices. The USDA says old crop soybean, soybean meal, and cotton sales during the week ending June 16th were marketing year lows, with soybean oil, pork, beef, and rice also down on the week. Old crop corn and sorghum and new crop wheat did see week-to-week improvements, but the respective sales paces for all three are slower than expected. The USDA’s next set of supply and demand estimates is out July 12th.
Physical shipments of corn and sorghum were more than what’s needed to meet USDA projections for the current marketing year. The 2021/22 marketing year got underway August 1st, 2021 for cotton and rice, September 1st, 2021 for beans, corn, and sorghum, and October 1st, 2021 for soybean products, while 2022/23 started June 1st, 2022 for wheat. The marketing year for beef and pork is the calendar year.
Wheat came out at 477,800 tons (17.6 million bushels). Japan and Mexico each purchased 163,900 tons and South Korea bought 83,100 tons. A couple of reporting weeks into the 2022/23 marketing year, wheat exports are 193.8 million bushels, compared to 226.8 million in 2021/22.
Corn was reported at 671,900 tons (26.5 million bushels), up sharply from both the week ending June 9th and the four-week average. Mexico picked up 475,000 tons and Japan purchased 158,600 tons, while China canceled on 67,200 tons. IN the final quarter of the 2021/22 marketing year, corn exports are 2.375 billion bushels, compared to 2.737 billion late in 2020/21. Sales of 358,400 tons (14.1 million bushels) were mainly to Costa Rica (144,900 tons) and Mexico (137,500 tons).
Sorghum sales were 94,300 tons (3.7 million bushels), considerably larger than both the previous week and the four-week average. China bought 60,300 tons and Mexico purchased 34,000 tons. Sorghum exports are 271.7 million bushels, compared to 284.5 million this time last year.
Rice sales were 20,100 tons, down 74% from the week before and 41% from the four-week average. Mexico picked up 9,900 tons and Saudi Arabia purchased 5,600 tons. Rice exports are 2,813,900 tons, compared to 3,309,800 a year ago. Sales of 2,900 tons for 2022/23 delivery were to Guatemala (1,700 tons) and El Salvador (1,200 tons).
Soybeans were pegged at 29,300 tons (1.1 million bushels), a steep decline from both the prior week and the four-week average. Germany bought 68,400 tons and Colombia picked up 17,600 tons, but unknown destinations canceled on 92,400 tons. So far, this marketing year, soybean exports are 2.213 billion bushels, compared to 2.269 billion last year. Sales of 265,000 tons (9.7 million bushels) for 2022/23 delivery were primarily to unknown destinations (105,100 tons) and Costa Rica (75,500 tons).
Soybean meal had a net reduction of 8,200 tons. Sales of 3,600 to 21,000 tons were canceled out by cancellations ranging from 9,000 to 42,200 tons. For the marketing year to date, soybean meal exports are 11,092,400 tons, compared to 11,005,900 a year ago. Sales of 42,300 tons for 2022/23 delivery were mostly to Honduras (15,600 tons) and Guatemala (12,000 tons).
Soybean oil was reported at 1,400 tons, a drop of 78% on the week and 69% from the four-week average. Mexico purchased 4,000 tons and Guatemala bought 400 tons, while unknown destinations canceled on 3,000 tons. Cumulative soybean oil exports are 684,400 tons, compared to 675,600 last year.
Upland cotton sales were pegged at 16,200 bales, 39% under the previous week and 90% below the four-week average. Vietnam picked up 6,300 bales and China purchased 4,500 bales, while South Korea canceled on 3,700 bales. 2021/22 upland cotton exports are 15,554,900 bales, compared to 16,021,500 in 2020/21. Sales of 277,300 bales for 2022/23 delivery were mainly to China (238,100 bales) and Mexico (32,600 bales).
Net beef sales totaled 11,200 tons, a decrease of 36% from the week before and 39% from the four-week average. The reported buyers were Japan (4,700 tons), South Korea (2,600 tons), China (1,400 tons), Canada (500 tons), and Mexico (500 tons), with a cancellation by Chile (100 tons). Shipments of 19,100 tons were 4% less than the prior week, but 3% more than the four-week average, primarily to Japan (5,400 tons), South Korea (4,500 tons), China (3,300 tons), Taiwan (1,300 tons), and Mexico (1,100 tons). Sales of 100 tons for 2023 delivery were to Japan.
Net pork sales totaled 25,400 tons, down 8% on the week and 10% from the four-week average. The listed purchasers were Mexico (15,200 tons), Japan (2,200 tons), China (1,900 tons), South Korea (1,800 tons), and Canada (1,300 tons). Shipments of 28,900 tons were 4% higher than the previous week, but 1% lower than the four-week average, mostly to Mexico (12,600 tons), Japan (4,400 tons), China (3,900 tons), South Korea (2,500 tons), and Canada (1,700 tons). Sales of 2,200 tons for 2023 delivery were to South Korea.