News

Generally bearish week for U.S. export sales

New crop soybean sales were the bright spot for exports during the week ending August 19^th. The USDA says 1.75 million tons of new crop U.S. soybeans were sold, mainly to China and unknown destinations, a little bit less than the previous week, but still a solid weekly total as the U.S. starts to assume seasonal control of the soybean export market. New crop corn sales were nearly 700,000 tons with Mexico leading the way, while wheat and soybean meal both notched new marketing year lows. China did buy U.S. beef and pork, but sales for both meats were below average. The USDA’s next set of supply and demand estimates is out September 10^th.

Physical shipments of wheat were above the mark needed to meet USDA projections for the current marketing year. The 2021/22 marketing year started June 1^st, 2021 for wheat and August 1^st, 2021 for cotton and rice, while 2020/21 kicked off September 1^st, 2020 for corn, sorghum, and soybeans, and October 1^st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 116,000 tons (4.3 million bushels), down 62% from the week ending August 12^th and 67% from the four-week average. Peru purchased 80,200 tons and the Philippines bought 47,800 tons, but unknown destinations canceled on 176,400 tons. Nearing the end of the first quarter of the 2021/22 marketing year, wheat sales are 335.4 million bushels, compared to 430.9 million in 2020/21.

Corn was reported at 6,600 tons (300,000 bushels), a drop of 97% from the previous week and 95% from the four-week average. Mexico picked up 132,000 tons and Canada purchased 46,900 tons, but unknown destinations canceled on 135,200 tons. Just outside of the end of the 2020/21 marketing year, corn sales are 2.769 billion bushels, compared to 1.752 billion late in 2019/20. Sales of 684,000 tons (26.9 million bushels) for 2021/22 delivery were mainly to Mexico (492,000 tons) and Japan (93,000 tons).

Sorghum sales were 53,100 tons (2.1 million bushels). Unknown destinations bought 30,000 tons and China picked up 16,800 tons. Sorghum exports are 280.9 million bushels, compared to 182.1 million this time last year.

Rice sales were 79,500 tons. Mexico purchased 33,700 tons and South Korea bought 22,200 tons. Rice exports are 645,200 tons, compared to 452,300 a year ago.

Soybeans were pegged at 75,100 tons (2.8 million bushels), up 11% from the week before and larger than the four-week average. China picked up 90,800 tons and the Netherlands purchased 66,000 tons, but unknown destinations canceled on 131,000 tons. So far, this marketing year, soybean sales are 2.284 billion bushels, compared to 1.737 billion last year. Sales of 1,750,000 tons (64.3 million bushels) for 2021/22 delivery were primarily to China (934,500 tons) and unknown destinations (587,900 tons).

Soybean meal came out at 61,700 tons, a decline of 14% from the prior week and 40% from the four-week average. Colombia bought 15,400 tons and Canada picked up 15,300 tons. With just over a month remaining in the marketing year, soybean meal sales are 12,062,200 tons, compared to 12,045,100 a year ago. Sales of 139,500 tons for 2021/22 delivery were mostly to the Philippines (90,000 tons) and Canada (33,900 tons).

Soybean oil was reported at 3,000 tons. Canada purchased 3,200 tons, while the Dominican Republic canceled on 300 tons. Cumulative soybean oil sales are 686,500 tons, compared to 1,267,900 last year.

Upland cotton was pegged at 245,100 bales. El Salvador bought 67,100 bales and Turkey picked up 61,100 bales. 2021/22 upland cotton exports are 5,463,900 bales, compared to 6,851,800 bales in 2020/21.

Net beef exports totaled 10,400 tons, a decrease of 6% on the week and 33% from the four-week average. The reported purchasers were Japan (3,800 tons), South Korea (2,500 tons), China (1,500 tons), Hong Kong (900 tons), and Taiwan (600 tons). Shipments of 18,700 tons were 5% lower than the previous week and 4% below the four-week average, mainly to Japan (5,400 tons), South Korea (5,300 tons), China (3,500 tons), Mexico (1,200 tons), and Taiwan (1,100 tons).

Net pork sales totaled 24,100 tons, 21% more than the week before, but 14% less than the four-week average. The listed buyers were Mexico (14,300 tons), Japan (2,400 tons), Canada (2,200 tons), China (1,300 tons), and Colombia (1,300 tons). Shipments of 29,900 tons were an increase of 4% from both the prior week and the four-week average, primarily to Mexico (14,100 tons), China (4,600 tons), Japan (3,900 tons), South Korea (1,800 tons), and Canada (1,700 tons).