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Old crop corn, soybean export sales hit marketing year lows

The USDA is reporting another mostly bearish week for U.S. export sales. Those sales are affected by several factors, including movement of the U.S. dollar against other major currencies and competition from other exporters. Old crop corn and soybeans during the week ending June 30^th both notched new marketing year lows following cancellations by unknown destinations, but cumulative sales have reached the USDA’s projection for the current marketing year, which runs through the end of August. Beef, pork, wheat, cotton, and soybean oil sales were also down, while sorghum, soybean meal, and rice posted week-to-week declines. The USDA’s next set of supply and demand estimates is out July 12^th.

Physical shipments of corn were more than what’s needed to meet projections for the current marketing year. The 2021/22 marketing year started 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 286,400 tons (10.5 million bushels). Taiwan purchased 42,800 tons and Japan bought 36,100 tons. About a month into the 2022/23 marketing year, wheat exports are 222.5 million bushels, compared to 245.8 million early in 2021/22.

Old crop corn had a net reduction of 66,600 tons (-2.6 million bushels). Sales of 8,200 to 67,400 tons were more than offset by cancellations from unknown destinations (134,600 tons) and Canada (100,700 tons). In the final quarter of the 2021/22 marketing year, corn exports are 2.376 billion bushels, compared to 2.745 billion in 2020/21. Sales of 111,200 tons (4.4 million bushels) for 2022/23 delivery were mainly to China (84,000 tons) and Saudi Arabia (30,000 tons).

Sorghum sales were 54,000 tons (2.1 million bushels), up sharply from the week ending June 23^rd and 96% from the four-week average. Unknown destinations picked up 54,000 tons and China purchased 2,600 tons. Sorghum exports are 273.9 million bushels, compared to 284.6 million this time last year.

Rice sales were 30,400 tons, 73% more than the previous week, but 2% less than the four-week average. Haiti bought 15,100 tons and Nicaragua picked up 6,000 tons. Rice exports are 2,861,800 tons, compared to 3,345,400 a year ago. Sales of 1,600 tons for 2022/23 delivery were primarily to Guatemala (1,100 tons) and El Salvador (500 tons).

Old crop soybeans had a net reduction of 160,000 tons (-5.9 million bushels). Sales of 17,100 to 68,800 tons were more than offset by cancellations from unknown destinations (405,800 tons) and China (59,200 tons). So far, this marketing year, soybean exports are 2.201 billion bushels, compared to 2.275 billion last year. Sales of 240,100 tons (8.8 million bushels) for 2022/23 delivery were mostly to unknown destinations (115,500 tons) and Mexico (101,000 tons).

Soybean meal was reported at 148,800 tons, a big increase from the week before and 47% higher than the four-week average. The Philippines purchased 107,300 tons and Colombia bought 21,300 tons. At this point in the marketing year, soybean meal export are 11,265,100 tons, compared to 11,450,500 a year ago. Sales of 30,400 tons for 2022/23 delivery were mainly to Guatemala (14,900 tons) and the Dominican Republic (14,000 tons).

There were no soybean oil sales. Cumulative soybean oil exports are 685,600 tons, compared to 677,500 last year.

Upland cotton was pegged at 37,400 bales, a decline of 22% from the prior week and 57% from the four-week average. Turkey picked up 14,700 bales and Vietnam purchased 13,200 bales. Closing in on the end of the 2021/22 marketing year, upland cotton exports are 15,640,400 bales, compared to 16,116,300 in 2020/21. Sales of 381,900 bales for 2022/23 delivery were primarily to Pakistan (98,700 bales) and Turkey (95,500 bales).

Net beef sales totaled 11,000 tons, a decrease of 35% on the week and 30% from the four-week average. The reported buyers were Japan (6,300 tons), South Korea (1,700 tons), Canada (1,100 tons), Mexico (900 tons), and Vietnam (600 tons), with cancellations by China (1,600 tons) and the United Arab Emirates (100 tons). Shipments of 20,400 tons were up 3% from the previous week and 7% from the four-week average, mostly to Japan (5,500 tons), South Korea (4,400 tons), China (4,200 tons), Taiwan (1,400 tons), and Mexico (1,100 tons).

Net pork sales totaled 31,200 tons, 3% lower than the week before, but 23% higher than the four-week average. The listed purchasers were Mexico (16,200 tons), China (11,400 tons), Japan (1,100 tons), Canada (900 tons), and Australia (500 tons). Shipments of 32,200 tons were 16% above the prior week and 19% larger than the four-week average, mainly to Mexico (16,100 tons), China (3,900 tons), Japan (3,800 tons), South Korea (3,000 tons), and Canada (1,400 tons).