News
Fast pace continues for new crop corn, soybean exports
China made another strong showing in the USDA’s weekly export sales report, even as political tensions and uncertainties about the Phase One Agreement continue. China was the biggest buyer of U.S. pork, beef, new crop corn, and old and new crop sorghum during the week ending August 20th, and was near the top for old and new crop soybeans and cotton exports, continuing recent efforts to ramp up purchases in order to meet those Phase One purchasing obligations. The U.S. Trade Representatives’ office and China’s Ministry of Commerce spoke earlier this week, with both sides reporting progress and reaffirming their commitment to making the trade deal work.
Physical shipments of soybeans and wheat were more than what’s needed to meet USDA projections for the current respective marketing years. The 2020/21 marketing year got underway June 1st for wheat and August 1st for cotton and rice, while 2019/20 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.
Wheat came out at 764,100 tons (28.1 million bushels), up 46% from the week ending August 13th and 41% higher than the four-week average. Mexico purchased 134,300 tons and China bought 123,000 tons. Almost a quarter into the 2020/21 marketing year, wheat sales are 436.4 million bushels, compared to 407.2 million in 2019/20. Sales of 11,900 tons (400,000 bushels) for 2020/21 delivery were to Mexico (10,900 tons) and Malaysia (1,000 tons).
Corn was reported at 270,400 tons (10.6 million bushels), a significant jump from both the previous week and the four-week average. Japan picked up 97,900 tons and Taiwan purchased 91,200 tons, while unknown destinations canceled on 64,500 tons. Nearing the end of the 2019/20 marketing year, corn sales are 1.752 billion bushels, compared to 1.972 billion late in 2018/19. Sales of 1,180,500 tons (46.5 million bushels) for 2020/21 delivery were mainly to China (666,000 tons) and Mexico (233,000 tons).
Old crop sorghum had a net reduction of 3,900 tons (-200,000 bushels). China bought 56,100 tons, but unknown destinations canceled on 60,000 tons. Late in the marketing year, sorghum sales are 182.1 million bushels, compared to 67.9 million this time last year. Sales of 312,500 tons (12.3 million bushels) for 2020/21 delivery were to China (177,000 tons) and unknown destinations (135,500 tons).
Rice sales were 75,300 tons. Mexico picked up 21,400 tons and Haiti purchased 15,000 tons. Early in the marketing year, rice exports are 452,300 tons, compared to 930,100 a year ago.
Soybeans were pegged at 50,400 tons (1.9 million bushels), a noticeable decline from the week before and 82% under the four-week average. The Netherlands bought 213,500 tons and China picked up 168,600 tons, but unknown destinations canceled on 469,300 tons. So far, this marketing year, soybean sales are 1.747 billion bushels, compared to 1.790 billion last year. Sales of 1,874,400 tons (68.9 million bushels) for 2020/21 delivery were primarily to unknown destinations (822,000 tons) and China (592,000 tons).
Soybean meal came out at 53,200 tons, 54% more than the prior week, but 63% less than the four-week average. Canada purchased 31,500 tons and Ecuador bought 30,900 tons, but unknown destinations canceled on 42,000 tons. At this point in the marketing year, bean meal sales are 12,045,100 tons, compared to 11,977,900 a year ago. Sales of 97,600 tons for 2020/21 delivery were mostly to the Philippines (45,000 tons) and Canada (26,100 tons).
Soybean oil was reported at 1,300 tons. Algeria picked up 10,000 tons and Morocco purchased 8,000 tons, but unknown destinations canceled on 18,000 tons. Cumulative soybean oil sales are 1,267,900 tons, compared to 888,500 last year. Sales of 21,200 tons for 2020/21 delivery were mainly to South Korea (15,000 tons) and Venezuela (5,500 tons).
Upland cotton was pegged at 156,600 bales. Vietnam bought 75,500 bales and China picked up 46,800 bales. Less than a month into the marketing year, cotton sales are 6,851,800 bales, compared to 8,084,700 a year ago. Sales of 7,900 bales for 2021/22 delivery were to China.
Net beef sales totaled 11,800 tons, down 40% on the week and 36% lower than the four-week average. The listed buyers were China (3,300 tons), Hong Kong (3,200 tons), South Korea (1,500 tons), Japan (1,100 tons), and Mexico (800 tons), with cancellations by Indonesia (300 tons) and Chile (100 tons). Shipments of 18,200 tons were down 1% from the previous week, but up 2% from the four-week average, primarily to South Korea (6,000 tons), Japan (4,900 tons), Taiwan (1,400 tons), Canada (1,100 tons), and Mexico (1,100 tons).
Net pork sales totaled 39,400 tons, an increase of 91% from the week before and 56% from the four-week average. The reported purchasers were China (11,200 tons), Mexico (10,700 tons), Canada (6,600 tons), Japan (3,300 tons), and South Korea (1,900 tons), with a cancellation by Nicaragua (200 tons). Shipments of 32,600 tons were 2% more than the prior week, but 2% less than the four-week average, mostly to Mexico (9,900 tons), China (9,500 tons), Japan (3,500 tons), Canada (3,200 tons), and South Korea (1,500 tons). Sales of 500 tons for 2021 delivery were mainly to Australia (400 tons).
Tags: Algeria, Australia, Canada, Cattle/Beef, Chile, China, China Commerce Ministry, Commodities, Corn, Cotton, Crops, Ecuador, Exports, Grains/Oilseeds, Haiti, Hogs/Pork, Hong Kong, Indonesia, Japan, Livestock, Malaysia, Mexico, Morocco, Rice, South Korea, soybean meal, soybean oil, Soybeans, Taiwan, the Netherlands, the Philippines, U.S. Trade Representative, unknown destinations, USDA, Venezuela, Vietnam, Wheat
Question: Does any know who are the top companies that are suppling beef, corn and rice to China are? I have been watching videos on the rain fall and possible 3 gorge dam collapse in China. This would cause a devastation to most of their food supply. Very curious on who is the leading importers into China