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Old crop soybean exports hit marketing year low

The USDA reports wheat export sales for the week ending August 3rd were above most pre-report estimates. Old crop sales for corn and soybeans were lower than expected, including a new marketing year low for beans. Physical shipments of soybeans and wheat were more than what’s needed to meet USDA projections for their respective marketing years. The 2016/17 marketing year for corn, soybeans, and sorghum runs through the end of August. The 2017/18 marketing year for wheat started June 1st.

Wheat came out at 464,300 tons (17.1 million bushels), up sharply from the week ending July 27th and 11% higher than the four week average. Indonesia purchased 115,000 tons and South Korea bought 70,000 tons, while unknown destinations canceled on 46,800 tons. At this point in the 2017/18 marketing year, wheat sales are 386.8 million bushels, compared to 393.0 million in 2016/17.

Corn was reported at 52,000 tons (2.0 million bushels). Japan picked up 88,100 tons and Mexico purchased 87,600 tons, but unknown destinations canceled on 248,100 tons. With about one reporting month left in the 2016/17 marketing year, corn sales are 2.221 billion bushels, compared to 1.954 billion late in 2015/16. Sales of 628,400 tons (24.7 million bushels) for 2017/18 delivery were mainly to Colombia (275,000 tons) and Mexico (194,100 tons).

Sorghum had a net reduction of 2,200 tons (100,000 bushels) after a cancellation by China. Nearing the end of the marketing year, sorghum sales are 190.2 million bushels, compared to 320.7 million this time last year. Sales of 145,500 tons (5.7 million bushels) for 2017/18 delivery were to unknown destinations (138,000 tons) and Japan (7,500 tons).

Old crop soybeans were pegged at 45,000 tons (1.7 million bushels), down 81% on the week and 83% lower than the four week average. The Netherlands bought 149,000 tons and China picked up 80,200 tons, but unknown destinations canceled on 283,300 tons. So far this marketing year, soybean sales are 2.234 billion bushels, compared to 1.935 billion a year ago. Sales of 639,300 tons (23.5 million bushels) for 2017/18 delivery were primarily to China (184,000 tons) and unknown destinations (141,300 tons).

Soybean meal came out at 6,000 tons, with sales ranging from 8,100 to 30,000 tons partially offset by cancellations of 300 to 64,500 tons. Cumulative soybean meal sales are 10,148,100 tons, compared to 10,382,400 last year.

Soybean oil was reported at 27,700 tons, a big increase from the week before and a jump of 65% from the four week average. Canada purchased 21,900 tons and Jamaica bought 3,500 tons. 2016/17 soybean oil sales are 1,084,300 tons, compared to 1,157,600 in 2015/16.

Net beef sales totaled 16,400 tons, up 44% on the week and 31% higher than the four week average. The listed purchasers were Japan (9,500 tons), Hong Kong (1,900 tons), South Korea (1,500 tons), Mexico (1,300 tons), and Canada (1,000 tons), with cancellations by Egypt (400 tons) and Cote D’Ivoire (100 tons).

Net pork sales totaled 18,900 tons, 7% more than the previous week and 30% above the four week average. The reported buyers were Hong Kong (4,200 tons), Japan (3,000 tons), Mexico (3,000 tons), South Korea (2,300 tons), and Canada (1,500 tons).