News

Slow corn export pace continues late in 2018/19

The USDA says China did make some purchases of U.S. ag goods during the week ending August 22^nd, even as trade tensions continue between the world’s two largest economics. China was the big weekly buyer of old crop U.S. soybeans and picked up U.S. pork, but canceled on a small amount of cotton. Japan was the top purchaser of U.S. pork and beef, while Mexico bought more than a half million tons of new crop U.S. corn. The USDA’s next set of supply and demand estimates is out September 12^th.

Overall, corn, soybean, soybean product, and wheat export sales were within analysts’ expectations, while physical shipments of beans and wheat were more than what’s needed weekly to meet USDA projections for the respective marketing years. The 2019/20 marketing year for wheat got underway June 1^st. 2018/19 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.

Wheat exports were a new marketing year high at 661,700 tons (24.3 million bushels), up 11% from the week ending August 15^th and 37% higher than the four-week average. South Korea purchased 105,100 tons and Mexico bought 90,700 tons. Slightly less than a quarter into 2019/20, wheat sales are 407.2 million bushels, compared to 329.6 million in 2018/19.

Old crop corn had a net reduction of 2,500 tons (-100,000 bushels). Sales of 3,400 to 13,500 tons were mostly offset by cancellations from Japan (21,900 tons) and unknown destinations (19,400 tons). Nearing the end of the 2018/19 marketing year, corn sales are 1.972 billion bushels, compared to 2.383 billion late in 2017/18. Sales of 858,900 tons (33.8 million bushels) for 2019/20 delivery were mainly to Mexico (547,200 tons) and unknown destinations (83,300 tons).

Sorghum came out at 300 tons, all to Mexico. At this point in the marketing year, sorghum sales are 67.9 million bushels, compared to 200.3 million a year ago.

Rice was reported at 128,000 tons. Mexico picked up 39,600 tons and Haiti purchased 30,500 tons. About a month into the marketing year, rice sales are 930,100 tons, compared to 542,200 this time last year.

Soybeans were pegged at 95,200 tons (3.5 million bushels). China bought 76,700 tons and Japan picked up 59,200 tons, but unknown destinations canceled on 157,700 tons. So far, this marketing year, soybean sales are 1.790 billion bushels, compared to 2.160 billion last year. Sales of 353,100 tons (13.0 million bushels) for 2019/20 delivery were primarily to unknown destinations (136,200 tons) and Mexico (123,000 tons).

Soybean meal sales were 52,600 tons. Vietnam purchased 48,000 tons and Mexico bought 22,700 tons, but unknown destinations canceled on 49,500 tons. Cumulative soybean meal sales are 11,977,900 tons, compared to 12,429,700 a year ago. Sales of 245,400 tons for 2019/20 delivery were mostly to the Philippines (90,600 tons) and unknown destinations (61,500 tons).

Soybean oil came out at 9,200 tons, a big jump from the previous week, but a decline of 26% from the four-week average. Guatemala picked up 5,200 tons and Mexico purchased 4,100 tons, while Canada canceled on 100 tons. 2018/19 soybean oil sales are 888,500 tons, compared to 1,061,000 in 2017/18. Sales of 1,000 tons for 2019/20 delivery were to Honduras.

Upland cotton was reported at 146,000 running bales. Turkey bought 46,100 bales and Vietnam picked up 27,800 bales, while China canceled on 4,600 bales. For the marketing year to date, upland cotton sales are 8,084,700 bales, compared to 8,661,500 last year.

Net beef sales totaled 13,700 tons, down 20% from the prior week and 18% lower than the four-week average. The listed purchasers were Japan (5,900 tons), South Korea (2,500 tons), Hong Kong (2,100 tons), Mexico (800 tons), and Taiwan (700 tons), with a cancellation by the Dominican Republic (100 tons). Sales of 100 tons for 2020 delivery were to Japan.

Net pork sales totaled 28,400 tons, an increase of 53% on the week and 85% from the four-week average. The reported buyers were Japan (9,800 tons), Mexico (8,700 tons), South Korea (2,600 tons), China (1,900 tons), and Canada (1,200 tons).