News

Exports mostly quiet ahead of Phase One signing

China bought routine amounts of U.S. pork and soybeans ahead of the signing of Phase One of the trade agreement. During the week ending January 9th, China purchased more than 200,000 tons of U.S. soybeans, along with less than 2,000 tons of U.S. pork and 400 tons of U.S. beef. Mexico was the biggest buyer of pork, South Korea was the leader on beef, and Japan was the top purchaser for corn. Soybean meal exports were a marketing year high, while rice sales notched a marketing year low for the second consecutive week. Next week’s report will cover the days leading up to and immediately after the signing of phase one of the trade deal with China.

Soybean product and wheat export sales topped pre-report expectations, while soybeans and corn were within analysts’ estimates. Physical shipments of soybeans were above what’s needed to meet USDA projections for the current marketing year. The 2019/20 marketing year started 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 650,600 tons (23.9 million bushels), up sharply from the week ending January 2nd and 32% higher than the four-week average. Unknown destinations purchased 130,500 tons and the Philippines bought 127,900 tons. About seven months into the 2019/20 marketing year, wheat sales are 719.6 million bushels, compared to 658.0 million in 2018/19. Sales of 59,700 tons (2.2 million bushels) were to unknown destinations (60,000 tons) with a cancellation by Nicaragua (300 tons).

Corn was reported at 784,800 tons (30.9 million bushels), a big jump from the previous week and 4% more than the four-week average. Japan picked up 373,100 tons and Colombia purchased 168,200 tons, while unknown destinations canceled on 109,200 tons. Just over a third of the way through the marketing year, corn sales are 759.9 million bushels, compared to 1.271 billion this time last year. Sales of 207,000 tons (8.1 million bushels) for 2020/21 delivery were to Japan.

Sorghum sales were 22,100 tons (900,000 bushels). Japan bought 20,000 tons and unknown destinations picked up 2,000 tons. For the marketing year to date, sorghum exports are 44.5 million bushels, compared to 18.8 million a year ago.

Rice exports were 29,200 tons, down 18% from the week before and 35% lower than the four-week average. Mexico purchased 21,500 tons and Canada bought 5,300 tons. Rice sales are 2,214,500 tons, compared to 1,907,500 last year.

Soybeans were pegged at 711,500 tons (26.1 million bushels), noticeably larger than the prior week and 3% above the four-week average. China picked up 216,600 tons and the Netherlands purchased 197,500 tons, but unknown destinations canceled on 377,300 tons. So far, this marketing year, soybean sales are 1.120 billion bushels, compared to 1.116 billion a year ago.

Soybean meal came out at 375,200 tons, a steep rise from both the previous week and the four-week average. The Philippines bought 100,600 tons and unknown destinations picked up 44,200 tons. At this point in the marketing year, soybean meal sales are 5,988,000 tons, compared to 6,909,700 last year.

Soybean oil was reported at 36,200 tons. South Korea purchased 15,000 tons and the Dominican Republic bought 10,500 tons. Cumulative soybean oil sales are 464,400 tons, compared to 405,900 a year ago.

Upland cotton sales were 232,900 bales, an increase of 53% on the week and 19% from the four-week average. Vietnam picked up 71,600 bales and Pakistan purchased 34,800 bales. 2019/20 upland cotton exports are 11,859,400 bales, compared to 10,878,800 in 2018/19. Sales of 14,500 bales for 2020 delivery were to Honduras (10,100 bales) and Vietnam (4,400 bales).

Net beef sales totaled 17,800 tons. The listed buyers were South Korea (6,100 tons), Japan (5,800 tons), Mexico (4,500 tons), Canada (800 tons), and China (400 tons), with cancellations by Hong Kong (900 tons) and Taiwan (400 tons).

Net pork sales totaled 38,700 tons. The reported purchasers were Mexico (19,200 tons), Japan (6,200 tons), Canada (4,600 tons), South Korea (2,400 tons), and China (1,900 tons).