News

Mixed week for export numbers

The USDA says pork export sales saw a week to week decline, but physical shipments were steady. New sales during the week ending February 6th were down modestly, less than 1,000 tons, mainly headed to Mexico, Japan, and China, while shipments topped 40,000 tons, with about 13,000 tons headed to both Mexico and China. Beef export sales were also below the previous week with Japan and South Korea the top purchasers. China was the biggest buyer of U.S. soybeans last week, but sales are reflecting the competition from Brazil, corn sales backed off from their recent highs, and wheat exports were up sharply on the week. Cotton exports were a new marketing year high, even with a cancellation by China. Export sales to China could start to improve soon as the 30-day implementation period for the Phase One trade agreement ends Saturday, but the full scope of the improvement, if any, wouldn’t be reflected in the weekly export numbers until near the end of the month. The USDA’s next set of supply and demand estimates is out March 10th.

Soybean oil sales topped pre-report expectations, while corn, soybeans, soybean meal, and wheat were within analysts’ estimates. Physical shipments of sorghum were above what’s needed to meet projections for the current marketing year. The 2019/20 marketing year got underway 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 643,100 tons (23.6 million bushels), up 90% from the week ending January 30th and 10% higher than the four-week average. Nigeria purchased 130,800 tons and the Philippines bought 104,800 tons, while unknown destinations canceled on 50,900 tons. Nearing the final quarter of the 2019/20 marketing year, wheat sales are 805.0 million bushels, compared to 658.0 million in 2018/19. Sales of 44,000 tons (1.6 million bushels) for 2020/21 delivery were to the Philippines (24,000 tons), unknown destinations (11,000 tons), and Peru (9,000 tons).

Corn was reported at 968,800 tons (38.1 million bushels), down 22% from the previous week and 9% lower than the four-week average. Japan picked up 383,000 tons and South Korea purchased 193,500 tons. Almost halfway through the marketing year, corn sales are 935.4 million bushels, compared to 1.271 billion this time last year.

Net sorghum sales were 17,600 tons (700,000 bushels). China bought 72,600 tons and Japan picked up 10,000 tons, but unknown destinations canceled on 65,000 tons. Sorghum exports this marketing year are 46.2 million bushels, compared to 18.8 million a year ago.

Rice exports were 136,000 tons, a jump of 78% from the week before and significantly larger than the four-week average. Colombia purchased 110,800 tons and Turkey bought 25,000 tons, while Mexico canceled on 17,200 tons. Rice sales are currently 2,538,200 tons, compared to 1,907,500 last year.

Soybeans were pegged at 644,800 tons (23.7 million bushels), 8% less than the prior week, but 2% more than the four-week average. China picked up 132,000 tons and Egypt purchased 120,000 tons. So far, this marketing year, soybean sales are 1.211 billion bushels, compared to 1.116 billion a year ago. Sales of 6,300 tons (200,000 bushels) for 2020/21 delivery were to Japan (6,100 tons) and Hong Kong (200 tons).

Soybean meal came out at 234,200 tons, 10% above the previous week, but 44% below the four-week average. Morocco bought 37,000 tons and the Philippines picked up 35,400 tons. At this point in the marketing year, soybean meal sales are 7,515,600 tons, compared to 6,909,700 last year.

Soybean oil was reported at 39,100 tons. South Korea purchased 25,000 tons and Morocco bought 16,000 tons; the Morocco portion was switched from unknown destinations following a cancellation. Cumulative soybean oil sales are 641,500 tons, compared to 405,900 a year ago.

Upland cotton exports were 350,900 bales, an increase of 6% on the week and 15% from the four-week average. Vietnam picked up 152,000 bales and Turkey purchased 74,000 bales, while China canceled on 48,400 bales. 2019/20 upland cotton exports are 13,197,400 bales, compared to 10,878,800 in 2018/19. Sales of 57,300 bales for 2020/21 delivery were mainly to Bangladesh (26,200 bales) and Pakistan (18,500 bales).

Net beef sales totaled 17,500 tons. The listed buyers were Japan (6,900 tons), South Korea (4,300 tons), Mexico (2,700 tons), Taiwan (1,000 tons), and Canada (500 tons). Shipments of 16,900 tons were primarily to Japan (6,300 tons), South Korea (4,700 tons), Mexico (1,900 tons), Canada (1,000 tons), and Taiwan (1,000 tons).

Net pork sales totaled 28,600 tons. The reported purchasers were Mexico (6,800 tons), Japan (4,400 tons), China (3,700 tons), South Korea (3,600 tons), and Canada (3,100 tons). Shipments of 42,900 tons were mostly to Mexico (13,100 tons), China (13,000 tons), Japan (6,000 tons), South Korea (3,600 tons), and Canada (2,200 tons).