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Slow pace continues for soybean, corn export sales

Old crop U.S. corn and soybeans continue to see slow export demand near the end of the marketing year. The USDA says corn sales during the week ending June 22^nd improved slightly from the previous week, but were lower than average, while soybeans fell sharply, both getting a lot of competition from Brazil. With just over two months remaining in the current marketing year for beans and corn, sales and shipments are behind last marketing year. Old crop cotton, rice, sorghum, and soybean oil, and new crop wheat sales were above a week ago. Beef, pork, and old crop soybean meal sales were down. Export demand is governed by several factors, including seasonal trends and currency movement. The USDA’s next set of supply and demand estimates is out July 12^th.

Physical shipments of corn, soybeans, and wheat were less than what’s needed to meet USDA projections for the current marketing year. The 2023/24 marketing year got underway June 1^st, 2023 for wheat, while 2022/23 kicked off August 1^st, 2022 for cotton and rice, 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 155,200 tons (5.7 million bushels). Japan purchased 78,400 tons and Mexico bought 48,400 tons. Just under a month into the 2023/24 marketing year, wheat exports are 154.9 million bushels, compared to 212 million in 2022/23.

Corn was reported at 140,400 tons (5.5 million bushels), up sharply from the week ending June 15^th, but down 16% from the four-week average. Japan picked up 103,700 tons and Mexico purchased 92,700 tons, while unknown destinations canceled on 87,500 tons. In the final quarter of the 2022/23 marketing year, corn exports are 1.527 billion bushels, compared to 2.379 billion in 2021/22. Sales of 123,500 tons (4.9 million bushels) for 2023/24 delivery were mainly to Mexico (79,500 tons) and Honduras (29,400 tons).

Sorghum sales were 112,000 tons (4.4 million bushels), 90% higher than the previous week and 21% larger than the four-week average. Unknown destinations bought 118,000 tons, while China canceled on 6,000 tons. Sorghum exports are 83.7 million bushels, compared to 271.8 million a year ago. Sales of 60,000 tons (2.4 million bushels) for 2023/24 delivery were to unknown destinations.

Rice sales were 19,500 tons, a jump of 47% from the week before and 54% from the four-week average. Haiti picked up 15,000 tons and Canada purchased 2,200 tons. Rice exports are 1,930,700 tons, compared to 2,831,400 last year.

Soybeans were pegged at 227,400 tons (8.4 million bushels), a drop of 50% from the prior week and 28% from the four-week average. Mexico bought 87,000 tons and Japan picked up 38,700 tons. So far, this marketing year, soybean exports are 1.923 billion bushels, compared to 2.204 billion a year ago. Sales of 17,000 tons (600,000 bushels) for 2023/24 delivery were to Mexico (20,000 tons), with a cancellation by China (3,000 tons).

Soybean meal came out at 104,800 tons, a decrease of 23% on the week and 55% from the four-week average. The Dominican Republic purchased 20,500 tons and Mexico bought 18,000 tons. Entering the final quarter of the marketing year, soybean meal exports are 11,595,100 tons, compared to 11,116,400 last year. Sales of 68,700 tons for 2023/24 delivery were primarily to Mexico (38,100 tons) and Canada (17,100 tons).

Soybean oil was reported at 1,000 tons, a big increase from the previous week and 5% above the four-week average. Canada picked up 900 tons. Cumulative soybean oil exports are 129,500 tons, compared to 685,500 a year ago.

Upland cotton was pegged at 125,600 bales, quite a bit more than the week before, but 44% less than the four-week average. China purchased 77,400 bales and Vietnam bought 37,500 bales. 2022/23 upland cotton exports are 13,778,200 bales, compared to 15,603,100 in 2021/22. Sales of 158,700 bales for 2023/24 delivery were mostly to El Salvador (72,200 bales) and Honduras (30,800 bales).

Net beef sales totaled 12,000 tons, 9% lower than the prior week and 16% below the four-week average. The reported buyers were China (2,500 tons), Japan (2,500 tons), Canada (1400 tons), Mexico (1,400 tons), and Taiwan (1,200 tons). Shipments of 15,100 tons were down 15% on the week and 7% from the four-week average, mainly to Japan (4,200 tons), South Korea (3,600 tons), China (1,800 tons), Taiwan (1,600 tons), and Mexico (1,400 tons).

Net pork sales totaled 26,700 tons, 7% below the previous week, but 3% above the four-week average. The listed purchasers were Mexico (15,100 tons), South Korea (4,100 tons), Japan (2,600 tons), Canada (1,300 tons), and Colombia (1,300 tons). Shipments of 29,300 tons were a decrease of 3% from the week before and 6% from the four-week average, primarily to Mexico (9,300 tons), China (3,900 tons), Japan (3,700 tons), South Korea (2,800 tons), and Australia (1,900 tons).