News

Solid week for new crop corn, soybean export sales

The USDA says new crop corn and soybean export sales during the week ending July 30th were solid. Those sales were driven by solid demand from a combination of China, Mexico, and unknown destinations, even as old crop sales were towards the low end of estimates, with just about a month left in the current marketing year. New crop sorghum also reflected good demand from China and unknown destinations, while old crop had a net reduction, and wheat was a little bit above average, with China the top purchaser for the week. Pork and beef sales were below the previous week’s lofty levels, but still showed interest from key trading partners. The USDA’s next set of supply and demand projections is out next Wednesday.

Physical shipments of wheat were above what’s needed to meet projections for the current marketing year. The 2020/21 marketing year started June 1st for wheat and August 1st for cotton and rice, while 2019/20 runs through the end of August for corn, sorghum, and soybeans and the end of September for soybean products.

Wheat came out at 605,500 tons (22.2 million bushels), down 11% from the week ending July 27th, but up 2% from the four-week average. China purchased 85,000 tons and Indonesia bought 78,000 tons. About two months into the 2020/21 marketing year, wheat sales are 375.6 million bushels, compared to 344.1 million in 2019/20.

Corn was reported at 101,600 tons (4.0 million bushels), a steep decline from the previous week and 70% lower than the four-week average. Colombia picked up 108,600 tons and Mexico purchased 83,100 tons, while unknown destinations canceled on 102,700 tons. With the 2019/20 marketing year drawing to a close, corn sales are 1.724 billion bushels, compared to 1.966 billion late in 2018/19. Sales of 2,600,000 tons (102.3 million bushels) for 2020/21 delivery were mainly to China (1,937,000 tons), unknown destinations (276,000 tons), and Mexico (252,500 tons).

Old crop sorghum had a net reduction of 13,300 tons (-500,000 bushels) as sales of 100 to 107,100 tons were more than offset by a cancellation on 120,500 tons from unknown destinations. Late in the marketing year, sorghum sales are 171.3 million bushels, compared to 66.6 million this time last year. Sales of 211,600 tons (8.3 million bushels) for 2020/21 delivery were to unknown destinations (136,000 tons) and China (75,600 tons).

Rice sales were 2,600 tons, 89% under the week before and 87% below the four-week average. Haiti bought 1,900 tons and Canada picked up 900 tons, while Liberia canceled on 300 tons. With just one reporting day left for the marketing year, rice sales are 3,389,900 tons, compared to 1,146,800 a year ago. Sales of 5,200 tons for 2020/21 delivery were primarily to Japan (2,000 tons) and Mexico (1,500 tons).

Soybeans were pegged at 345,200 tons (12.7 million bushels), 72% more than the prior week, but 22% less than the four-week average. Germany purchased 183,000 tons and Indonesia bought 67,500 tons, but unknown destinations canceled on 188,200 tons. So far, this marketing year, soybean sales are 1.725 billion bushels, compared to 1.792 billion last year. Sales of 1,405,000 tons (51.6 million bushels) for 2020/21 delivery were mostly to China (474,000 tons), Mexico (351,900 tons), and unknown destinations (212,500 tons).

Soybean meal came out at 328,300 tons, an increase of 26% on the week and significantly larger than the four-week average. The Philippines picked up 223,200 tons and Colombia purchased 37,300 tons. For the marketing year to date, soybean meal sales are 11,999,400 tons, compared to 11,676,500 a year ago. Sales of 203,900 tons for 2020/21 delivery were mainly to Spain (94,000 tons) and Vietnam (50,000 tons).

Soybean oil was reported at 24,400 tons. Guatemala bought 12,000 tons and China picked up 8,600 tons, which were switched over from South Korea. Cumulative soybean oil sales this year are 1,269,300 tons, compared to 875,600 last year. Sales of 11,100 tons for 2020/21 delivery were to South Korea (8,000 tons) and Mexico (3,100 tons).

Old crop upland cotton had a net reduction of 68,500 bales with sales of 600 to 5,800 bales more than offset by cancellations of 1,800 to 61,300 bales. 2019/20 upland cotton sales are 17,056,400 bales, compared to 9,826,900 late in 2018/19. Sales of 130,800 bales for 2020/21 delivery were primarily to China (46,900 bales) and Vietnam (22,100 bales).

Net beef sales totaled 13,400 tons, down 55% from the previous week and 35% lower than the four-week average. The reported buyers were Japan (4,600 tons), South Korea (3,200 tons), Canada (1,200 tons), Taiwan (1,100 tons), and Indonesia (900 tons), with a cancellation by Chile (100 tons). Shipments of 17,600 tons were 4% less than the week before, but 8% more than the four-week average, mostly to South Korea (5,600 tons), Japan (4,900 tons), Taiwan (1,800 tons), Canada (1,200 tons), and Mexico (1,100 tons).

Net pork sales totaled 30,300 tons, a decrease of 23% from the prior week and 14% from the four-week average. The listed purchasers were Mexico (12,900 tons), China (5,600 tons), Canada (2,700 tons), South Korea (2,200 tons), and Japan (2,100 tons). Shipments of 34,400 tons were an increase of 9% on the week and 6% from the four-week average, mainly to Mexico (11,600 tons), China (9,000 tons), Japan (4,100 tons), Canada (2,300 tons), and South Korea (2,200 tons).