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New crop soybean export sales a weekly highlight

The USDA is reporting another generally down week for export sales. U.S. exports continue to face a few different headwinds, including relative strength in the dollar against some other major currencies, high prices, and competition from other exporters. Old crop corn and soybean sales for the week ending June 2^nd were above average, but the overall pace for both has slowed down quite a bit over the past couple of months. New crop soybean sales were the weekly highlight, topping a half a million tons, driven by demand from Pakistan and China. Old crop soybean product, sorghum, cotton, and rice sales were all lower, with beef and pork also seeing week-to-week declines. The USDA’s next set of supply and demand estimates is out Friday, June 10^th at Noon Eastern/11 Central.

Physical shipments of corn and sorghum were more than what’s needed to meet USDA projections for the current marketing year. The 2021/22 marketing year kicked off August 1^st, 2021 for cotton and rice, September 1^st, 2021 for beans, corn, and sorghum, and October 1^st, 2021 for soybean products, while 2022/23 got underway June 1^st, 2022 for wheat. The marketing year for beef and pork is the calendar year.

Wheat came out at 451,000 tons (16.6 million bushels). Unknown destinations purchased 117,600 tons and Mexico bought 73,200 tons. A total of 740,300 tons were carried over from the 2021/22 marketing year. 2022/23 wheat exports are 167.5 million bushels, compared to 202.5 million early in 2021/22. The total for the 2021/22 marketing year was 18,668,900 tons, compared to 24,806,600 for 2020/21.

Corn was reported at 280,400 tons (11 million bushels), up 51% from the week ending May 26^th and 19% from the four-week average. Mexico picked up 89,500 tons and Japan purchased 76,500 tons. Early in the final quarter of the 2021/22 marketing year, corn exports are 2.343 billion bushels, compared to 2.728 billion in 2020/21. Sales of 73,500 tons (2.9 million bushels) for 2022/23 delivery were mainly to unknown destinations (53,800 tons) and Mexico (20,000 tons).

Sorghum sales were 10,200 tons (400,000 bushels), down 69% from the previous week and sharply lower than the four-week average. China bought 73,200 tons, while unknown destinations canceled on 63,000 tons. Sorghum exports are 267.9 million bushels, compared to 284.7 million this time last year.

Rice was a marketing year low at 7,600 tons. That’s a drop of 63% from the week before and 67% from the four-week average. Jordan picked up 3,000 tons and Canada purchased 1,700 tons. Rice exports are 2,715,400 tons, compared to 3,194,000 a year ago. Sales of 700 tons for 2022/23 delivery were to Guatemala.

Soybeans were pegged at 429,900 tons (15.8 million bushels), a solid improvement from the prior week and 41% higher than the four-week average. China bought 128,900 tons and Egypt picked up 117,500 tons. So far, this marketing year, soybean exports are 2.203 billion bushels, compared to 2.261 billion last year. Sales of 595,300 tons (21.9 million bushels) for 2022/23 delivery were primarily to Pakistan (297,000 tons) and China (261,000 tons).

Soybean meal came out at 134,400 tons, a decrease of 29% on the week and 35% from the four-week average. Mexico purchased 46,100 tons and Venezuela bought 40,000 tons. At this point in the marketing year, soybean meal exports are 10,844,300 tons, compared to 10,440,900 last year. Sales of 8,700 tons for 2022/23 delivery were to Costa Rica.

Soybean oil was reported at 1,300 tons, 70% below the previous week and 52% under the four-week average. Colombia picked up 2,300 tons and Guatemala purchased 1,000 tons, while Costa Rica canceled on 2,300 tons. Cumulative soybean oil exports are 676,800 tons, compared to 671,000 a year ago.

Upland cotton was pegged at 259,200 bales, 27% less than the week before, but 96% more than the four-week average. China bought 114,500 bales and Vietnam picked up 104,600 bales. 2021/22 upland cotton exports are 15,512,200 bales, compared to 15,835,500 in 2020/21. Sales of 102,900 bales for 2022/23 delivery were mostly to China (66,100 bales) and Guatemala (25,900 bales).

Net beef sales totaled 17,700 tons, a decline of 1% from the prior week and 21% from the four-week average. The reported purchasers were Japan (5,600 tons), China (5,200 tons), South Korea (3,600 tons), Canada (1,000 tons), and Mexico (800 tons). Shipments of 17,400 tons were down 9% on both the week and from the four-week average, mainly to Japan (6,000 tons), South Korea (4,600 tons), China (2,400 tons), Mexico (900 tons), and Canada (800 tons). Sales of 400 tons for 2023 delivery were to Canada.

Net pork sales totaled 16,700 tons, a drop of 48% from the previous week and 44% from the four-week average. The listed buyers were Mexico (8,300 tons), Japan (4,700 tons), South Korea (900 tons), Canada (800 tons), and Colombia (700 tons), with a net cancellation by Chile (100 tons). Shipments of 24,300 tons were a decrease of 22% from the week before and 24% from the four-week average, primarily to Mexico (11,300 tons), Japan (3,500 tons), China (3,300 tons), South Korea (1,800 tons), and Canada (1,200 tons).