News

Generally bearish week for export numbers

The USDA says China bought 49,800 tons of old crop U.S. sorghum during the week ending June 6th, along with 74,700 tons of soybeans and 2,400 tons of U.S. pork. Beijing also purchased 200 tons of U.S. pork for 2020 delivery. Trade tensions between the U.S. and China are ongoing, with mixed signals from both sides ahead of an expected meeting between President Trump and President Xi at the G20 summit later this month in Japan.

Overall, when compared to pre-report projections, the weekly numbers were bearish for corn, soybean oil, and wheat and neutral for soybeans and bean meal. The 2019/20 marketing year for wheat got underway June 1st, while 2018/19 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.

2019/20 wheat sales were 47,600 tons (12.0 million bushels). Japan purchased 112,100 tons and Mexico bought 75,300 tons, but unknown destinations canceled on 189,200 tons. Early in the 2019/20 marketing year, wheat sales are 7.8 million bushels, compared to 3.8 million towards the outset of 2018/19. According to the Ag Department, 1,587,300 tons were carried over from 2018/19, while exports of 17,600 tons on May 31st were mostly to Mexico (16,200 tons).

Corn was reported at 168,500 tons (6.6 million bushels), up sharply from the week ending May 30th, but down 64% from the four-week average. Japan picked up 164,900 tons and Colombia purchased 94,600 tons, but unknown destinations canceled on 184,500 tons. With about a quarter remaining in the 2018/19 marketing year, corn sales are 1.906 billion bushels, compared to 2.214 billion at this point in 2017/18. Sales of 94,100 tons (3.7 million bushels) for 2019/20 delivery were mainly to unknown destinations (101,600 tons), with a cancellation by Canada (10,200 tons).

Sorghum had a net reduction of 200 tons. China bought 49,800 tons, all switched from unknown destinations, with a cancellation on 200 tons. Cumulative sorghum sales are 61.4 million bushels, compared to 201 million a year ago.

Soybeans were pegged at 255,900 tons (9.4 million bushels), 50% lower than the previous week and 44% less than the four-week average. Egypt picked up 110,000 tons and Japan purchased 87,500 tons, but unknown destinations canceled on 185,200 tons. So far, this marketing year, soybean sales are 1.725 billion bushels, compared to 2.063 billion last marketing year. Sales of 275,200 tons (10.1 million bushels) were primarily to Pakistan (70,000 tons) and Taiwan (65,000 tons).

Soybean meal sales were 112,500 tons, 2% above the week before, but 34% below the four-week average. The Philippines bought 85,100 tons and Vietnam picked up 50,000 tons, but unknown destinations canceled on 50,000 tons. At this point in the marketing year, soybean meal sales were 11,118,400 tons, compared to 11,113,700 tons a year ago. Sales of 41,500 tons for 2019/20 delivery were mostly to Guatemala (35,000 tons) and El Salvador (4,300 tons).

Soybean oil came out at 5,100 tons, a decline of 67% from the prior week and a dip of 71% from the four-week average. South Korea purchased 3,000 tons and Canada bought 700 tons. 2018/19 soybean oil sales are 761,700 tons, compared to 884,800 in 2017/18.

Net beef sales totaled 16,400 tons, a decrease of 2% on the week and 18% from the four-week average. The reported purchasers were Japan (8,900 tons), Mexico (1,800 tons), Canada (1,300 tons), Taiwan (1,200 tons), and South Korea (600 tons). Net sales of 100 tons for 2020 delivery were to Japan.

Net pork sales totaled 23,100 tons, a drop of 32% from the previous week and down 36% from the four-week average. The listed buyers were Australia (5,000 tons), Mexico (4,400 tons), Japan (3,400 tons), Hong Kong (2,700 tons), and China (2,400 tons). Net sales of 100 tons were to China (200 tons), with no reported cancellations.