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Soybean export sales hit marketing year low

The USDA says soybean export sales during the week ending November 5th were a marketing year low. Sales of 1.5 million tons were 26% lower than average and while China was the biggest buyer, demand has slowed following a spike in price and the somewhat improved pace of planting in South America. Corn, wheat, and rice exports were also lower than average, but cotton sales showed a solid improvement. China was the biggest buyer of U.S. pork and beef, but overall, while pork sales were up 36% from the four-week average, beef sales dipped 23%. The USDA’s next set of supply and demand estimates is out December 10th.

Physical shipments of soybeans were more than what’s needed to meet USDA projections for the 2020/21 marketing year. The current marketing year got underway June 1st for wheat, August 1st for cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.

Wheat came out at 300,500 tons (11.0 million bushels), down 50% from the week ending October 29th and 46% lower than the four-week average. Guatemala purchased 92,500 tons and Japan bought 55,800 tons, while unknown destinations canceled on 36,600 tons. Closing in on the halfway point of the 2020/21 marketing year, wheat sales are 626.8 million bushels, compared to 557.7 million in 2019/20.

Corn was reported at 978,300 tons (38.5 million bushels), a decline of 63% from the previous week and 47% from the four-week average. Unknown destinations picked up 260,600 tons and Mexico purchased 258,600 tons. Almost a quarter into the marketing year, corn sales are 1.345 billion bushels, compared to 491.1 million this time last year.

Sorghum sales were 177,200 tons (7.0 million bushels). China bought 245,200 tons, but unknown destinations canceled on 68,000 tons. At this point into the marketing year, sorghum sales are 150.3 million bushels, compared to 32.2 million a year ago.

Rice sales were 31,900 tons, 12% above the week before, but 42% below the four-week average. Haiti picked up 15,800 tons and Saudi Arabia 6,600 tons. Rice exports are 1,262,200 tons, compared to 1,669,900 last year.

Soybeans were pegged at 1,468,500 tons (54.0 million bushels), 4% under the prior week and 26% less than the four-week average. China purchased 745,600 tons and Thailand bought 92,000 tons. So far, this marketing year, soybean sales are 1.834 billion bushels, compared to 813.4 million a year ago.

Soybean meal came out at 145,300 tons. Indonesia picked up 55,500 tons and Bangladesh purchased 45,000 tons, with a cancellation on 12,900 tons by El Salvador. For the marketing year to date, soybean meal sales are 4,617,100 tons, compared to 4,513,300 last year.

Soybean oil was reported at 88,000 tons. India bought 33,000 tons and South Korea picked up 30,000 tons. Cumulative soybean oil sales are 316,000 tons, compared to 267,500 a year ago.

Upland cotton was pegged at 236,800 bales, up sharply from the previous week and 30% higher than the four-week average. Pakistan purchased 61,900 bales and Vietnam bought 55,900 bales. 2020/21 upland cotton sales are 9,102,100 bales, compared to 9,893,800 in 2019/20. Sales of 14,800 bales for 2021/22 delivery were mainly to Vietnam (11,000 bales) and Mexico (3,500 bales).

Net beef sales totaled 14,300 tons, a decrease of 30% from the week before and 23% from the four-week average. The reported buyers were China (3,500 tons), Japan (3,100 tons), Canada (1,900 tons), South Korea (1,300 tons), and Taiwan (1,300 tons), with a cancellation by Kuwait (100 tons). Shipments of 14,200 tons were a drop of 34% from the prior week and 22% from the four-week average, primarily to Japan (4,400 tons), South Korea (2,200 tons), China (1,900 tons), Hong Kong (1,500 tons), and Mexico (1,400 tons). Sales of 3,300 tons for 2021 delivery were mostly to South Korea (2,500 tons) and Taiwan (600 tons).

Net pork sales totaled 42,500 tons, an increase of 1% on the week and 36% from the four-week average. The listed purchasers were China (21,100 tons), Mexico (9,900 tons), Japan (6,600 tons), South Korea (1,200 tons), and Canada (900 tons). Shipments of 38,100 tons were 1% more than the previous week and 3% larger than the four-week average, mainly to China (13,100 tons), Mexico (11,000 tons), Japan (4,500 tons), Canada (2,000 tons), and South Korea (1,900 tons). Sales of 16,100 tons for 2021 delivery were primarily to China (9,400 tons) and Australia (6,100 tons).