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New crop soybean export sales up on week

The USDA’s reporting another solid week for new crop soybean export sales. The total of 1.4 million tons for the week ending August 10^th was up from the prior week, continuing to reflect solid demand from China, with U.S. soybean prices temporarily competitive against Brazil. The new marketing year starts September 1^st and while new crop sales got off to a slow start, this recent uptick in demand is viewed as a positive by analysts and the markets. New crop corn and sorghum sales were below a week ago. Pork sales were higher than last week, mainly to Mexico, Japan, and China, while beef was a little bit above the previous week, but lower than average. Export demand is driven by several factors, including currency movement and seasonal supply trends. The USDA’s next set of supply and demand estimates is out September 12^th.

Physical shipments of soybeans were more than what’s needed to meet projections for the current marketing year. The 2023/24 marketing year got underway June 1^st, 2023 for wheat and August 1^st, 2023 for cotton and rice, while 2022/23 started September 1^st, 2022 for beans, corn, and sorghum and October 1^st, 2022 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 359,500 tons (13.2 million bushels), down 37% from the week ending August 3^rd, but up 3% from the four-week average. Mexico purchased 142,600 tons and unknown destinations bought 82,500 tons. Nearing the end of the first quarter of the 2023/24 marketing year, wheat exports are 248.7 million bushels, compared to 323.8 million in 2022/23.

Corn was reported at 233,500 tons (9.2 million bushels), 55% higher than the previous week and 16% above the four-week average. Unknown destinations picked up 100,000 tons and Mexico purchased 81,600 tons. Late in the 2022/23 marketing year, corn exports are 1.596 billion bushels, compared to 2.4 billion in 2021/22. Sales of 704,700 tons (27.7 million bushels) for 2023/24 delivery were mainly to Mexico (381,900 tons) and unknown destinations (122,600 tons).

Sorghum sales were 41,100 tons (1.6 million bushels), a solid improvement from the week before, but a drop of 60% from the four-week average. China bought all 41,100 tons. Sorghum exports are 111.6 million bushels, compared to 274.6 million a year ago. Sales of 60,000 tons (2.4 million bushels) for 2023/24 delivery were to China.

Rice sales were 24,700 tons. Mexico picked up 14,600 tons and Haiti purchased 8,300 tons. Rice exports are 443,400 tons, compared to 314,600 this time last yar.

Soybeans were pegged at 93,600 tons (3.4 million bushels), 77% lower than the prior week and 42% below from the four-week average. The Netherlands bought 200,800 tons and Indonesia picked up 115,400 tons. So far, this marketing year, soybean exports are 1.957 billion bushels, compared to 2.188 billion a year ago. Sales of 1,407,500 tons (51.7 million bushels), primarily to China (940,000 tons) and unknown destinations (258,000 tons).

Soybean meal came out at 126,400 tons, a decline of 12% on the week and 32% from the four-week average. Colombia purchased 45,000 tons and Ireland bought 30,000 tons. Late in the marketing year, soybean meal exports are 12,664,800 tons, compared to 11,754,800 last year. Sales of 220,500 tons for 2023/24 delivery were mostly to Mexico (51,300 tons) and Vietnam (20,000 tons).

Soybean oil was reported at 700 tons, a drop from the previous week and unchanged from the four-week average. Mexico picked up 500 tons and Canada purchased 200 tons. Cumulative soybean oil exports are 128,000 tons, compared to 695,300 a year ago.

Upland cotton was pegged at 186,300 bales. China bought 138,400 bales and Turkey picked up 13,200 bales. Early in the 2023/24 marketing year, upland cotton exports are 5,126,500 bales, compared to 7,367,700 just after the outset of 2022/23.

Net beef sales totaled 15,100 tons, 2% more than the week before, but 13% less than the four-week average. The reported purchasers were South Korea (4,600 tons), China (3,200 tons), Japan (2,700 tons), Mexico (1,600 tons), and Taiwan (700 tons). Shipments of 15,800 tons were 2% lower than the prior week and down 4% from the four-week average, mainly to South Korea (4,200 tons), Japan (3,500 tons), China (2,800 tons), Mexico (1,600 tons), and Taiwan (1,100 tons). Sales of 100 tons for 2024 delivery were to Japan.

Net pork sales totaled 28,700 tons, an increase of 29% on the week and 36% from the four-week average. The listed buyers were Mexico (9,400 tons), Japan (4,900 tons), China (3,500 tons), Canada (3,100 tons), and South Korea (3,000 tons). Shipments of 28,600 tons were 7% more than the previous week and 11% above the four-wee average, primarily to Mexico (13,100 tons), China (3,600 tons), Japan (3,300 tons), South Korea (2,400 tons), and Canada (1,700 tons). Sales of 2,800 tons for 2024 delivery were to South Korea.